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Goldman Sachs expects the Federal Reserve to cut interest rates in September

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#Macro
TechFlow
382Words
Jul 8, 2025

On July 8, according to Jinshi Data, Goldman Sachs expects the Federal Reserve to cut interest rates in September, three months earlier than previously forecast. This shift reflects some early signs that tariff-related inflation is more moderate than expected, and that disinflationary forces—including slowing wage growth and weakening demand—are taking shape. The bank's chief U.S. economist, David Mericle, estimates that the probability of a rate cut in September is "slightly higher" than 50%, and expects rate cuts of 25 basis points in September, October and December, with two more rate cuts in early 2026. Goldman Sachs also lowered its terminal interest rate forecast from 3.5%-3.75% to 3%-3.25%. [Deep Tide TechFlow]

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