Two giants have postponed their expectations for interest rate cuts from the Fed!!
Goldman Sachs announced that it expects an interest rate cut from the Fed in December; JPMorgan also joined the ranks of investment banks postponing expectations for a rate cut from the Fed.
Goldman Sachs raised its growth forecast for the US economy in the fourth quarter by 0.5 points to 1%, citing recent developments aimed at easing the US-China trade war.
Goldman Sachs decreased the probability of a recession over the next 12 months to 35%, emphasizing that it expects an interest rate cut from the US Federal Reserve (Fed) in December instead of July.
Goldman Sachs lowered its core PCE inflation forecast from 3.8% to 3.6%.
JPMorgan also postponed its interest rate cut expectation
JPMorgan joined the ranks of investment banks postponing expectations for an interest rate cut from the Fed. The bank postponed its expectation for a rate cut from September to December.
Barclays also moved its expected rate cut from July to December. The bank emphasized that it expects 25 basis point rate cuts from the Fed in March, June, and September 2026.