Goldman Sachs has revised its predictions for the Federal Reserve’s interest rate cuts, reflecting growing recession concerns. The investment bank now anticipates a series of easing measures as early as June, sooner than previously expected in July, in anticipation of potential economic downturn. If the U.S. avoids a recession, Goldman Sachs predicts three consecutive 25 basis point rate reductions, bringing the federal funds rate to around 3.5% to 3.75%. However, if a recession does occur, the Fed’s response will likely be more aggressive, potentially lowering rates by up to 200 basis points next year. Goldman Sachs now anticipates a total of 130 basis points in rate cuts for 2025, a significant increase from its previous estimate of 105 basis points. This adjusted outlook aligns closely with current market expectations as per last Friday’s closing prices.