Goldman Sachs delays Fed rate cut forecast to Dec. 2026, March 2027

Goldman Sachs has pushed back its forecast for the next U.S. Federal Reserve rate cuts by one quarter, citing stronger-than-expected inflation, Bloomberg reported. In a report on May 8, the bank said it now expects the next two rate cuts to occur in December 2026 and March 2027. Goldman analysts noted that rising energy costs could keep the core Personal Consumption Expenditures (PCE) price index at around 3% this year, above the Fed's 2% target. This, they added, could delay the point at which conditions are met for the Fed to begin easing its monetary policy.