Goldman, BofA Delay Fed Cut Calls After ‘Last Straw’ Jobs Data

Goldman Sachs & Co and Bank of America Corp are the latest in a growing cohort of Wall Street banks pushing back their forecasts for interest-rate cuts, arguing that both jobs and inflation data make a case for the Federal Reserve to keep rates on hold until at least the end of the year.

As the Iran war jolts oil markets and stokes inflation, traders are increasing bets that the Fed will keep policy on hold through 2026 — and may even hike in early 2027. The shift is echoed by a growing number of Fed officials, including two dissenters at the central bank’s last meeting, who said the next move could be an increase.