Goldman Sachs predicts additional Fed rate cut

The US and China are unlikely to reach a trade deal before the 2020 US Presidential Election and the resulting uncertainty will force the US Federal Reserve (Fed) to deliver an additional interest rate cut before the year end, according to Eamon Javers, Washington Correspondent for CNBC.

The Fed cut rates by 25 basis points last month. Goldman Sachs sees 75 percent chance of the Fed reducing rates by 25 basis points in September and puts the odds of another rate cut in October at 50 percent.