Goldman Sachs predicts the Federal Reserve will cut interest rates twice more this year, stating that the market is overly concerned about rate hikes.

BlockBeatNews · 2026-04-02T04:24:22+00:00

BlockBeats News, April 2 — Although the market's narrative around the Federal Reserve has recently shifted towards rate hikes, Goldman Sachs' baseline forecast still predicts two rate cuts by 2026. They also list four main reasons suggesting the market is overly worried:1. The current oil shock is less severe than past ones;2. A slowdown in the labor market and wage growth will buffer inflation effects;3. The current Federal Reserve interest rate level is roughly in line with the baseline;4. The Federal Reserve typically does not adjust rates solely due to oil price shocks.

BlockBeatNews

2026-04-02 04:24:22

BlockBeats message, April 2. Even though the market’s narrative around the Federal Reserve has recently shifted toward rate hikes, Goldman Sachs’ benchmark forecast still calls for two rate cuts in 2026. It also cites four major reasons, claiming that the market is overly worried:

The current oil shock is not as severe as in the past;
A cooling labor market and slower wage growth will cushion the impact on inflation;
The current Federal Reserve interest rate level is roughly in line with the benchmark level;
The Federal Reserve typically does not adjust interest rates solely due to an oil price shock.

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