Goldman Sachs Predicts Two Rate Cuts by 2026 Despite Fed's Current Stance

On April 2, despite the recent shift in market sentiment towards interest rate hikes by the Federal Reserve, Goldman Sachs maintains its forecast of two rate cuts by 2026. According to BlockBeats, the financial institution cites four main reasons for its outlook, suggesting that the market's concerns may be overstated. Firstly, the current oil shock is not as severe as previous ones. Secondly, a slowing labor market and decelerating wage growth are expected to mitigate inflationary pressures. Thirdly, the current Federal Reserve interest rate levels are approximately in line with the benchmark rate. Lastly, the Federal Reserve typically does not adjust rates solely in response to oil price shocks.