Goldman Sachs No Longer Expects Fed Rate Cuts in 2026, Delays Next Cuts to June and December 2027

According to Jin10, on June 8, Goldman Sachs no longer expects the Federal Reserve to cut rates in 2026 due to stronger-than-expected labor market conditions. The bank pushed back its forecast for the Fed's final two rate cuts from December 2026 and March 2027 to June 2027 and December 2027.

May U.S. employment growth exceeded all expectations, reflecting labor market resilience. Goldman Sachs raised its probability of a Fed rate hike from 10% to 20%, though still considers hikes unlikely. The bank lowered its 2026 U.S. unemployment rate forecast from 4.6% to 4.4%.

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