Goldman Sachs Adjusts Federal Reserve Rate Cut Expectations to December and Raises Economic Growth Forecast

According to Odaily Planet Daily, Goldman Sachs has adjusted the expected timing for the Federal Reserve's next rate cut to December, previously expected in July. Analysts pointed out that the financial environment is significantly loose, and the forecast for the annual growth rate of the US economy in the fourth quarter of 2025 has been raised to 1%.

Goldman Sachs has lowered the probability of an economic recession in the next 12 months to 35%. At the same time, it has revised down the expected path for core personal consumption expenditures (PCE) inflation, forecasting a peak of 3.6%, down from the previous expectation of 3.8%.