Goldman Sachs Forecasts Inflation Decline, Potentially Paving the Way for Fed Rate Cuts

Goldman Sachs economists predict a downward trend in U.S. inflation rates starting after August 2025, potentially paving the way for Federal Reserve rate cuts by late 2025. The prediction is based on anticipated tariff impacts and shifts in labor market flexibility that are expected to ease inflationary pressures. While this change could lead to increased risk asset allocation and potential Fed rate cuts, the crypto market remains relatively unchanged so far. The lack of immediate market impact might be attributed to ongoing regulatory updates shaping market activity.