Goldman Sachs has adjusted its forecast for Federal Reserve interest rate cuts, citing a stronger-than-expected U.S. labor market. The bank now anticipates the Fed's rate cuts to occur in June and December 2027, rather than December 2026 and March 2027. Despite robust job growth in May, which surpassed expectations, Goldman Sachs maintains that a rate hike is unlikely, although it has increased the probability of a small hike from 10% to 20%. The bank's chief U.S. economist, Merrick, noted that inflation is unlikely to become self-sustaining, reducing the likelihood of a rate hike. Goldman Sachs has also revised its forecast for the U.S. unemployment rate, lowering it from 4.6% to 4.4% for this year. The bank's baseline scenario still includes two 25-basis-point rate cuts next year, but the probability has been reduced from 40% to 30%.