Goldman Sachs delays expectations of Fed rate cuts until December 2026 due to core PCE inflation of 3%. According to Goldman Sachs (via ChainCatcher), the firm has pushed back its forecast for the Fed’s next two rate cuts to December 2026 and March 2027, citing persistent inflation pressures. After the FOMC decision on April 29, Goldman Sachs economists said that the pass-through of energy costs could keep core personal consumption expenditure (PCE) inflation at around 3% throughout 2026, above the Fed’s 2% target. The economists also said that any rate cuts must be conditional on weaker monthly data and a soft labor market. The April 29 meeting saw four dissenting votes, the most since 1992; the Federal Reserve kept the federal funds rate unchanged at 3.50%-3.75%.

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