Goldman Sachs CFO "likes" the significant rate cut by the Federal Reserve: A soft landing for the US economy is in sight.

Goldman Sachs Chief Financial Officer Denis Coleman said on Tuesday that the Federal Reserve's 50 basis point rate cut has put the US economy on a soft landing trajectory. At the time Coleman made these comments, market participants questioned whether the Fed's aggressive rate cuts were timely in order to control inflation without the economy falling into recession. Some analysts are concerned about the outlook for the US economy, warning that similar aggressive rate cuts may not prevent an economic downturn similar to the early 21st-century recession and the global financial crisis. The Federal Reserve cut rates by 50 basis points last Wednesday, surprising some economists. This was the first time the Fed had cut rates by such a large margin since the initial stages of the 2019 COVID-19 pandemic and the 2008 global financial crisis. Coleman said on Tuesday, "I think the first 50 basis point cut is a clear signal of a new direction. Hopefully this will release more and more confidence and significantly reduce the cost of capital - maybe even take some more strategic actions before the end of this year." He added, "As we move into 2025, this could help alleviate the backlog in the entire market and promote market activity." When asked if the Fed rate cuts had ensured a soft landing for the US economy, Coleman said he hoped and expected that this would be the case. "At the moment, that's the consensus," Coleman said. "Managing the economy during this transition has always been a very tricky job. But inflation is coming down, the unemployment rate is at a manageable level, the Fed has started cutting rates, and to some extent, maintaining the trajectory of a soft landing." Not everyone believes that the US economy will remain robust in the coming months. JPMorgan Chase CEO Jamie Dimon said in an interview on Tuesday, "I am a long-term optimist. But in the short term, I am more skeptical than others that everything will be fine." "The market's pricing seems to indicate that things will turn out well. I am cautious about this," he added.