Goldman Sachs economists have updated their forecast, now anticipating that the Federal Reserve will cut interest rates by 25 basis points in June and September of 2025. This is a shift from their previous prediction of rate cuts in May and June. Led by Chief Economist Jan Hatzius, the team suggests the Fed will proceed with caution after the first rate cut. They also expect the Federal Reserve to implement 25 basis point cuts in December, January, and March meetings.
Barclays has also revised its forecast, now predicting that the Federal Reserve will reduce rates twice instead of three times in 2025.
