Goldman Sachs said on Wednesday that it expects the Fed to cut interest rates by 25 basis points at each meeting between November 2024 and June 2025, with the final interest rate range being 3.25-3.5%.

Last month, the Fed cut its overnight rate by 50 basis points, citing increased confidence that inflation will continue to fall back to its annual target of 2%. The overnight rate, which currently ranges from 4.75% to 5.00%, guides the rate banks pay to each other and affects interest rates for consumers.

The market currently expects a 92.1% chance of a 25 basis point cut at the Fed's next meeting, and only a 7.9% chance of keeping rates unchanged.