Goldman Sachs now sees Fed holding rates steady until June 2027
Goldman Sachs has changed its forecast for the Federal Reserve’s interest rate decisions. The firm previously expected the Fed to cut rates in December and March 2027, but now predicts the Fed will hold rates steady until cuts in June 2027 and December 2027.
The revision comes after Friday’s jobs report and still-low unemployment. The market is currently pricing in a rate hike in December, with a possibility of it coming as soon as September.
The Fed is currently in a blackout period, which will end with next Wednesday’s FOMC meeting and press conference.