Goldman Sachs postpones two Fed rate cuts to December and March 2027

Goldman Sachs has postponed the timing of the next two interest rate cuts by the Federal Reserve to December of this year and March 2027, due to stubborn inflation and the impact of energy costs on core PCE inflation. Goldman Sachs expects core PCE inflation to approach 3% this year, higher than the Federal Reserve's target of 2%. The International Monetary Fund previously predicted that the core PCE inflation rate would not fall back to 2% until early 2027.