Goldman Sachs pushes back the timing of the Federal Reserve's next two interest rate cuts by one quarter each to December of this year and March 2027.

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Against the backdrop of ongoing conflicts in the Middle East, inflation is more stubborn than expected, prompting Goldman Sachs to delay the timing of the Federal Reserve’s next two rate cuts by one quarter each, respectively in December of this year and March 2027. Goldman Sachs’s forecast undoubtedly adds to the market’s hopes for rate cuts. Goldman Sachs believes that the transmission effect of energy costs will keep core PCE inflation close to 3% throughout the year, well above the Fed’s 2% policy target, making the conditions for rate cuts unlikely to mature. Previously, the International Monetary Fund (IMF) also predicted that core PCE inflation would only fall back to 2% by early 2027. (Cailian Press)

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