Goldman Sachs has revised its forecast for the next Federal Reserve rate cuts, now expecting them in December 2026 and March 2027, due to persistent inflation concerns. The bank cites energy cost pass-through as a factor keeping core Personal Consumption Expenditures (PCE) inflation near 3% throughout 2026, above the Fed's 2% target. This aligns with the International Monetary Fund's projection that core PCE will not reach 2% until early 2027.
At its recent meeting, the Federal Reserve maintained the federal funds rate at 3.50% to 3.75%, with significant dissent among members. Market data from CME FedWatch indicates a 93.4% probability that rates will remain unchanged at the upcoming June meeting. The delay in rate cuts could impact the crypto market by tightening liquidity and strengthening the dollar, which may suppress crypto asset valuations.
Goldman Sachs Delays Fed Rate Cut Forecast to December 2026
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