I had the forecast from Goldman Sachs posted yesterday during Asia time:
Recap/adding more now:
Goldman Sachs expects the Federal Reserve to keep interest rates unchanged at its upcoming policy meeting on July 29-30, but anticipates rate cuts at each of the remaining three meetings in 2025:
- September 16-17
- October 28-29
- December 9-10
- Looking ahead, Goldman also forecasts two additional rate cuts by the Fed in early 2026.
Analysts say that this expectaion is provided inflation expectations stay anchored
- emphasises that the easing cycle is contingent on inflation not flaring up again, but with current trends holding, it sees room for a gradual but steady policy pivot.
Analysts cite:
- mounting pressure from a weakening job market, with private-sector hiring slowing to near “stall speed,” raising the risk of a deeper economic deceleration
- consumer spending has flatlined for six consecutive months—an unusual trend outside of recessionary periods
This article was written by Eamonn Sheridan at investinglive.com.
