$ETH

Goldman Sachs Predicts Fed Rate Cut in September, Lowers Terminal Rate Forecast

Goldman Sachs has revised its U.S. monetary policy outlook, now anticipating a Federal Reserve rate cut as early as September. The adjustment comes amid easing inflationary pressures and reduced tariff-related economic risks.

Key Forecast Updates:

Earlier Rate Cut: A September easing is now likely, driven by cooling inflation and stabilizing economic indicators.

Lower Terminal Rate: The projected long-term federal funds rate has been trimmed to 3.00-3.25%, down from the previous 3.50-3.75% estimate.

Market Implications: The shift suggests a more accommodative Fed stance, potentially boosting equities and easing borrowing costs.

Potential Triggers:

Inflation Slowdown: Sustained disinflation trends may give the Fed room to act.

Trade Policy Impact: Weaker-than-expected tariff disruptions could reduce economic uncertainty.

If realized, this dovish pivot could signal a softer landing for the U.S. economy, though labor market data remains critical. Investors should monitor upcoming CPI reports and Fed commentary for confirmation.

#ETH🔥🔥🔥🔥🔥🔥