Goldman Sachs delays Fed rate cut forecast to September
Business
Goldman Sachs now expects the US Federal Reserve to start cutting interest rates later than planned, moving its forecast from June to September and December 2026.
The reason? Rising inflation risks linked to the Middle East conflict have made it more cautious about acting too soon.
Potential for earlier cuts if job market weakens
While September is its new target, Goldman Sachs says it could move faster if the US job market suddenly weakens.
Its team emphasized that any big shifts in employment numbers might push the Fed to cut rates earlier than expected.