Goldman Sachs Economist Warns of Potential Job Losses, Holds to Its Two Rate Cut Prediction as Labor Market Reaches Inflection Point

Goldman Sachs economist Jan Hatzius believes the US labor market is at an "inflection point," where further weakness in worker demand could start impacting actual job levels, not just job openings. While nonfarm payrolls have remained healthy, initial and continuing jobless claims have risen in recent weeks, creating uncertainty around the current strength of labor demand.  Goldman Sachs is sticking to its forecast of two rate cuts by the Federal Reserve this year, believing the first quarter's high inflation print was likely an aberration.