Investing.com-- U.S. stocks were in selloff mode Monday as growing concerns over an economic slowdown put squeeze on high-flying technology stocks.These hefty losses followed on last week's selloff on fears of an economic slowdown.
"We now expect faster cuts because the funds rate looks more clearly inappropriately high; the Fed looks behind, having worried too much about inflation for too long and held steady in July; and the rationale for cutting now includes the more urgent priority of supporting the economy," Goldman Sachs said in a recent note.
When asked about whether a weakening labor market and manufacturing sector might prompt action from the Fed, Goolsbee avoided committing to a specific course but mentioned it doesn’t make sense to maintain a"restrictive" policy stance if the economy is softening.Markets now price in a 78% chance the Federal Reserve will not only cut rates in September, but ease by a full 50 basis points.