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Updated · Bloomberg · May 9Goldman Sachs pushes back Fed rate cut expectations
12 articles · Updated · Bloomberg · May 9
- The bank now sees the US Federal Reserve’s next two cuts coming in December 2026 and March 2027, one quarter later than previously forecast.
- Goldman’s US economists said energy-cost passthrough should keep core PCE inflation closer to 3% this year, above the Fed’s 2% target.
- That would delay the conditions needed for policy easing, implying US interest rates may stay higher for longer than Goldman had earlier expected.
How will the Fed's new leadership navigate a stagflation threat its predecessors never faced? With AI driving up costs, are the Fed's traditional inflation-fighting tools becoming obsolete? As China exports deflation while US tariffs and AI fuel inflation, which force will ultimately win?