Goldman Sachs now estimates a higher likelihood of interest rate cuts in response to milder inflation trends and tariff impacts, adjusting its forecasts accordingly.
Goldman Sachs forecasts that the Federal Reserve will cut interest rates in September, estimating a slightly over 50% chance of a 25 basis point reduction. The firm anticipates further cuts in October and December, along with two additional cuts in early 2026, lowering its terminal rate forecast to 3.00-3.25%.