Goldman Sachs Now Expects Fed Cut in December - FXLeaders

Goldman Sachs drops call for December Fed rate cut

Goldman Sachs has revised its projections for Federal Reserve rate cuts, now anticipating no cuts until June 2027, as indicated in their recent analysis [source]. This shift is primarily influenced by a stronger-than-expected jobs report and persistently low unemployment figures, pointing towards a resilient labor market. The desk interprets this revision as a potential signal of more prolonged monetary policy stability than previously expected, which could keep the dollar stronger against its peers in the medium term. With the Fed currently in a blackout period ahead of next Wednesday's FOMC meeting, traders are cautious but vigilant for the implications of any signals from incoming Fed personnel like Kevin Warsh.

Goldman Sachs Delays Fed Rate Cut Forecast to Late 2026, Early 2027 - CryptoRank

Goldman Sachs pushes Fed rate cut forecast to December 2026

The desk interprets Goldman Sachs' revised forecast for the Federal Reserve's rate cuts, now projected for December 2026, as a significant indicator of sustained inflationary pressures and a robust labor market. Per the full note [source], Goldman cites persistent inflation near 3%, driven by rising energy costs, as a key factor in delaying rate cuts. This shift suggests a more cautious approach from the Fed, which could keep upward pressure on Treasury yields and impact rate-sensitive sectors. The desk highlights that Goldman's terminal rate forecast remains unchanged at 3% to 3.25%, indicating a shallower easing path than previously anticipated by the market.

Morgan Stanley Expects Fed to Delay Rate Cuts Amid Oil Shock - FXLeaders