Goldman Sachs says Fed will cut rate to 4.5% in 2007

Bloomberg.com reports that the U.S. Federal Reserve will cut the overnight target interest rate to 4.5% from the current 5.25% this year, Goldman Sachs economists forecast in a research note today. The Fed will reduce the rate by at least 0.25 point on or before policy makers meet on Sept 18, according to the note.