Goldman Sachs expects the Federal Reserve to cut interest rates in September.
BlockBeats News, July 8th, Goldman Sachs expects the Federal Reserve to cut interest rates in September, three months earlier than previously predicted. This shift reflects some early signs that inflation related to tariffs has been milder than expected, while anti-inflation forces—including slowing wage growth and weakening demand—are forming.
The bank's US chief economist David Mericle estimates the probability of a rate cut in September to be "slightly above" 50%, expecting rate cuts of 25 basis points in September, October, and December, with two more cuts in early 2026. Goldman Sachs has also lowered its terminal rate expectations from 3.5%-3.75% to 3%-3.25%.
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