Goldman Sachs economists delayed their forecast for the next Federal Reserve interest rate cut to 2027. The bank previously expected cuts to begin in 2026.
A stronger-than-anticipated U.S. labor market supports the case for keeping rates higher for longer. Recent Federal Reserve commentary has also turned more hawkish.
Goldman Sachs considers further rate hikes unlikely but more probable than initially estimated. The updated forecast triggered a risk-off market mood and pressured technology stocks.