Goldman Sachs Predicts Two Fed Rate Cuts in 2026

Goldman Sachs forecasts the U.S. Federal Reserve will cut interest rates twice in 2026, with each move potentially reducing the federal funds rate by quarter-point increments. This would bring the terminal interest rate to a range of 3.00%–3.25%. Their macro research team highlights moderating inflation pressures and a slowing labor market as key drivers for further easing following earlier rate cuts in 2025.