Goldman Sachs Drops 2026 Fed Cut Call After Strong U.S. Jobs Data
Updated
Updated · Seeking Alpha · Jun 7
Goldman Sachs Drops 2026 Fed Cut Call After Strong U.S. Jobs Data
3 articles · Updated · Seeking Alpha · Jun 7
Summary
Goldman Sachs said it no longer expects the Federal Reserve to cut interest rates this year, reversing its prior forecast after Friday’s stronger-than-expected U.S. jobs report.
David Mericle, Goldman’s chief U.S. economist, said the employment data strengthened confidence in the labor market, reducing the case for near-term policy easing.
The shift signals Wall Street is reassessing how long the Fed may keep rates unchanged as resilient hiring undercuts expectations for 2026 cuts.
For markets and borrowers, the revised call points to a higher-for-longer rate outlook if incoming U.S. labor data continue to hold up.