US Daily: No Fed Cuts This Year

Goldman Sachs has delayed its expectation for the next two Federal Reserve rate cuts to 2027, citing stronger-than-expected labor market data and activity. The firm maintains its terminal rate forecast at 3-3.25% but acknowledges the possibility of a flat rate path.

Key Takeaways

• 1.Goldman Sachs is delaying its forecast for the final two Fed rate cuts until June and December of 2027.
• 2.Economic data, specifically job growth, has been stronger than expected, reducing the urgency for the Federal Reserve to lower rates.
• 3.The terminal rate forecast remains unchanged at 3-3.25%, with the firm seeing a flat path for rates as a plausible alternative.

Table of Contents

• US Daily: No Fed Cuts This Year
• Disclosure Appendix