Goldman Sachs Shifts Fed Outlook, Now Sees Next Rate Cuts in June and December 2027

Goldman Sachs Research said the Federal Reserve is increasingly likely to leave rates unchanged for the rest of 2026 as US growth and labor conditions remain firmer than expected. The bank moved its projected remaining cuts to June 2027 and December 2027, from December 2026 and March 2027, and expects the federal funds rate to later fall to 3.0%–3.25%.