Goldman Sachs has pushed back its forecast for Federal Reserve interest rate cuts, now expecting no cuts until 2027. The revision follows stronger-than-expected U.S. jobs data, showing continued labor market resilience.
The Fed has maintained a hawkish stance, citing robust job gains and inflation above its 2% target. Markets are now pricing an 80% probability that no rate cuts will occur in 2026.
Analysts are watching upcoming jobs and inflation reports for any signs of softening that could shift policy expectations.