Goldman Sachs Group Inc. expects the Federal Reserve to deliver three quarter-point interest rate cuts this year, revising its outlook upward amid muted tariff effects and labor market weakness, the Wall Street brokerage said on Monday.
What Happened: The investment bank now projects three consecutive 25-basis-point cuts in September, October and December, abandoning its earlier forecast of a single reduction in December, Reuters reported. The revised projection reflects growing concerns about economic momentum despite ongoing tariff implementation.
Federal Reserve Chair Jerome Powell has cited tariff pressures as a key inflation driver, with the central bank’s median core inflation forecast rising from 2.5% in December to 3.1% currently. “That’s due to the …