Goldman Sachs forecasts robust US economic growth in 2026, driven by tax cuts, real wage increases, and rising wealth, while inflation is expected to moderate. According to their "2026 US Economic Outlook" report, the Federal Reserve is anticipated to cut interest rates by 25 basis points in both June and September due to labor market uncertainties. The bank projects a GDP growth of 2.5% year-on-year by Q4 2026, with full-year growth at 2.8%. Core PCE inflation is expected to be 2.1% by December, while the core CPI is predicted to slow to 2%. The unemployment rate is projected to remain stable at 4.5%, though there is a risk of "jobless growth" as businesses increasingly adopt AI to cut labor costs. Additionally, Goldman Sachs suggests that political pressures from the midterm elections may prevent significant tariff increases.