Fed Holds Rates Steady
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President Donald Trump has frequently lambasted the Fed chair for not cutting rates more aggressively.
Goldman Sachs sees early-2026 market broadening led by small-/mid-caps, but expects limited runway as growth cools and valuations stay high—read now.
(Corrects attribution in paragraph 3) Jan 12 (Reuters) - Goldman Sachs pushed back its forecast for U.S. Federal Reserve rate cuts on Sunday, now expecting two 25-basis-point reductions in June and September 2026 instead of the previously anticipated moves in March and June.
Goldman Sachs has identified five key investment themes that will shape 2026, from mid-cycle economic acceleration to the great corporate re-leveraging. The AI trade is shifting from infrastructure spending to actual adoption,
With recent data showing the economy ended 2025 on a strong note and inflation running about 3% annually, above the Fed’s 2% target, analysts believe any more interest rate cuts are unlikely before summer. Markets still are pricing in one or two cuts this year.