Goldman Sachs Predicts Federal Reserve Rate Cuts Amid Trade Uncertainty

According to BlockBeats, Goldman Sachs anticipates that the Federal Reserve will reduce interest rates by 25 basis points in July, September, and October. This prediction is driven by the recession risks associated with tariffs and trade uncertainties. Goldman Sachs' Chief Economist Jan Hatzius noted that the Federal Reserve's stance is more cautious than market expectations. Despite the higher threshold for rate cuts compared to 2019, Goldman Sachs believes that rising unemployment could prompt the Federal Reserve to act, even with elevated inflation levels.