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

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:

  1. The current oil shock is not as severe as in the past;

  2. A cooling labor market and slower wage growth will cushion the impact on inflation;

  3. The current Federal Reserve interest rate level is roughly in line with the benchmark level;

  4. The Federal Reserve typically does not adjust interest rates solely due to an oil price shock.

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