Goldman Sachs Delays Fed Rate Cut Forecast to Dec. 2026 

• Goldman Sachs now expects the first Fed rate cut in December 2026, not September.
• April jobs added 115,000, removing pressure on the Fed to cut rates soon.
• Half of all major Wall Street forecasters now see zero Fed rate cuts in 2026.

Goldman Sachs has delayed its Federal Reserve rate cut forecast by one quarter. The bank now expects the first cut in December 2026 and the second in March 2027. Energy cost passthrough is keeping core PCE inflation closer to 3% than the Fed’s 2% target, pushing back the timeline for any policy easing.

April’s nonfarm payrolls came in at 115,000. Stable enough to remove pressure on the Fed to act. With the labour market no longer the concern, the Fed’s focus has shifted entirely to containing inflation.

“The Fed will shift its focus to containing upside inflation risks now that the labour market appears back on track,” said Goldman …

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