Goldman Sachs: Expects the Federal Reserve to stop cutting interest rates this year.

Due to the strong performance of the job market being better than expected, economists at Goldman Sachs have now judged that the Federal Reserve will not cut interest rates this year. The bank has pushed back the expected timing for the last two rounds of rate cuts by the Fed from December 2026 and March 2027 to June and December 2027. Goldman still believes that the probability of the Fed raising interest rates is low, but given the Fed officials' shift toward a more hawkish stance and the resilience of the economy, the bank has raised the probability of a slight rate hike from 10% to 20%.