Central Banks
Goldman Sees More Fed Cuts This Year as Tariffs Dent Growth
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Goldman Sachs Group Inc. economists now forecast both the Federal Reserve and European Central Bank will cut interest rates three times this year as President Donald Trump’s tariffs weigh on economic growth.
Economists led by Jan Hatzius now see the Fed cutting in July, September and November, versus earlier bets on two cuts this year and one in 2026. In a separate note, economists led by Sven Jari Stehn said lower European Union growth forecasts reinforce expectations the ECB will cut rates in April and June, with a further quarter percentage-point reduction now seen for July.