Goldman Sachs delays rate cut forecast to December 2026
Goldman Sachs has pushed back its forecast for the next Federal Reserve rate cut to December 2026, citing sticky inflation near 3% and a resilient jobs market.
The revision follows a stronger-than-expected April jobs report, with the bank expecting PCE inflation to remain near 3% through 2026.
The terminal rate forecast was left unchanged at around 3% to 3.25%, implying a slower and shallower easing path than markets had anticipated, with energy costs driving inflation and Brent crude rising from the low $70 to near $100.