Goldman Sachs indicated a calmer stance from Fed officials regarding their dual mandate since the September employment report. This shift sets the stage for a likely 25-basis point rate cut for the coming FOMC meeting.

“Since the release of the September employment report a month ago, Fed officials have sounded more relaxed about both sides of their dual mandate than at earlier points this year,” Goldman Sachs Economic Research team said in an investor note.

As a result, Goldman indicated that it should make for a 25-basis point November cut “uncontroversial” as the investment bank does not expect any noticeable revisions to the upcoming FOMC statement or much guidance about the plan for future meetings.

As for this week’s FOMC meeting slated for November 7, the CME FedWatch tool all but fully has priced in a 25-basis point cut to a target rate probability of 4.50%-4.75%. Per the FedWatch tool, that target rate probability for a 25 point cut sits at 98.1%, as just 1.9% is priced that rates will hold as is at 4.75%-5.00%.

Moreover, the investment institution went on to add: “We are penciling in four more consecutive cuts in the first half of 2025 to a terminal rate of 3.25-3.5% but see more uncertainty about both the speed next year and the final destination.”

For market participants looking to keep a closer pulse on the broader financial market and the upcoming FOMC meeting, here are some exchange traded funds that can act as a potential proxy investment:

Market Tracking ETFs: (NYSEARCA:DIA), (DDM), (UDOW), (DOG), (DXD), (SDOW), (NYSEARCA:SPY), (VOO), (IVV), (RSP), (SSO), (UPRO), (SH), (SDS), (SPXU), (NASDAQ:QQQ), (QQQM), (QLD), (TQQQ), (QID), and (SQQQ).