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Goldman Sachs

June 12, 2026

Global Economics Wrap-Up

Weekly UpdateRates Govt BondsOther

Goldman Sachs has updated its forecast to reflect no Fed rate cuts in 2026. Central bank actions across the globe are diverging, with the ECB hiking rates while other central banks navigate varied growth and inflation pressures.

Key Takeaways

  • 1.The Fed is no longer expected to cut interest rates in 2026, with cuts delayed until 2027.
  • 2.The ECB raised policy rates by 25bp to 2.25%, with the BoJ expected to hike by 25bp.
  • 3.The 2026 World Cup is projected to have modest but measurable effects on US GDP and inflation data.

Table of Contents

  • Global Economics
  • US Economics
  • Europe Economics
  • Asia/EM Economics
  • GDP Forecast Tracker: GS vs. Consensus
  • Disclosure Appendix

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Authors

Joseph BriggsAndrew TiltonKatya VashkinskayaJessica RindelsSarah Dong

Securities

US Federal Funds Rate

Themes

Monetary Policy Normalization

Regions

GlobalUnited StatesChinaJapan