Goldman Sees Fed Cuts Delayed to December, March on Inflation

Goldman Sachs said it pushed back expectations for the US Federal Reserve’s next two rate cuts by one quarter to December 2026 and March 2027 as inflation proves stickier than anticipated.

Energy cost passthrough is likely to keep the core PCE inflation closer to 3% than the Fed’s 2% target through the year, delaying the conditions needed for policy easing, Goldman’s US economists wrote in the May 8 report.