Goldman Sachs Reverses Rate Cut Prediction: Fed Cuts Delayed Until December

Goldman Sachs has shifted its view on the Federal Reserve’s potential to cut interest rates this year. After easing tensions between the US and China, the bank revised its economic forecasts for 2025, including a postponement of the rate cut expectation to December. Instead of July, as previously anticipated, Goldman Sachs now expects three rate cuts from the Fed in 2025 and 2026. The bank also predicts one of these cuts will occur in December instead of July, with the remaining two in March and June of next year.