Goldman Sachs now expects the Federal Reserve to cut rates in December 2026 and March 2027, pushed back by persistent inflation.
Goldman Sachs revised its Federal Reserve rate cut timeline, delaying the first reduction to December 2026 from earlier projections. The bank cited stickier-than-expected inflation as the primary reason for the adjustment, now forecasting two cuts by March 2027.
Previously, Goldman had anticipated earlier rate cuts, but recent inflation data prompted the shift. The new outlook aligns with growing market concerns over sustained price pressures, contrasting with earlier expectations of a more aggressive easing cycle.
The adjustment reflects broader uncertainty in monetary policy timing, as investors recalibrate expectations for Fed action amid evolving economic conditions.