Federal Reserve Rate Cut Delayed: Strong Employment Data Hints at Continued Policy Stance

Despite recent positive job market figures, financial institutions Goldman Sachs and Barclays now anticipate the Federal Reserve’s next interest rate adjustment may not happen until July. Their forecast predicts three 25-basis-point cuts in 2025: one in July, another in September, and a final one in December. However, if employment data continues to show consistent growth, these potential rate cuts could be postponed even further.