Goldman Sachs: Still expects the Federal Reserve to cut interest rates twice, timing uncertain

MarsBitNews · 2026-03-06T15:15:27+00:00

Goldman Sachs investment chief states that a weak labor market could prompt the Federal Reserve to delay interest rate cuts, even as the Middle East conflict continues to influence short-term policy. They expect the Fed to make two final rate cuts to reach the neutral rate, but the timing remains uncertain.

MarsBitNews

2026-03-06 15:15:27

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Mars Finance News, March 6 — Lindsay Rosner, Head of Multi-Asset Fixed Income Investment at Goldman Sachs, stated: “Signs of a weakening labor market serve as a reminder to the Federal Reserve that delaying rate cuts could come at a cost, even though short-term policy remains influenced by ongoing Middle East conflicts. Developments in Iran and their potential impact on inflation have somewhat overshadowed the U.S. employment situation, making the path toward potential policy normalization less clear. We expect the Fed to ultimately complete the remaining two ‘normalization rate cuts’ to bring interest rates back to neutral, but given the current uncertainties, the timing remains uncertain.” (Jin10)

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