Fed Rate Cut Potential Delayed: Goldman Sachs Forecasts July Timing

The Federal Reserve’s next interest rate cut may be delayed until July, according to forecasts from prominent financial institutions like Goldman Sachs and Barclays. Robust non-farm employment data released this past Friday has led these firms to predict a postponement of the anticipated cuts. Goldman Sachs maintains its prediction for three 25 basis point rate cuts in 2025, with the first scheduled for July, followed by September and December. However, the firm emphasizes that if employment data continues to demonstrate strong growth, the timing of these rate cuts could be further pushed back.