Goldman Sachs is changing its Fed call.
Previously, they saw the Federal Reserve cutting rates in December and then again in March 2027. Now they see the Fed holding rates steady until cuts in June 2027 and December 2027.
They cited Friday’s jobs report and still-low unemployment.
The market, meanwhile, is pricing in a hike in December and a good chance it could come as soon as September.
The Fed is in the blackout period now and until next Wednesday’s FOMC, which is when we will get the first press conference from Kevin Warsh.
