Goldman Sachs Sees No Rate Cuts in 2026, Trump Sees No Reason
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Goldman Sachs now sees no Fed rate cuts in 2026, pushing two quarter-point cuts to June and December 2027 from prior December 2026 and March 2027 after May’s jobs report showed 172,000 new jobs versus 88,000 expected and unemployment steady at 4.3%. For crypto markets, a longer period of tighter policy raises downside pressure on risk assets and is likely to weigh on token performance, DeFi and DEX activity, CEX fundraising and broader adoption.
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- Goldman Sachs no longer expects Federal Reserve rate cuts in 2026, as per reports.
- The banking giant pushed its easing forecast to June and December 2027.
- President Trump opposed a tighter policy, arguing there is no reason to raise rates.
Goldman Sachs has dropped its expectation for Federal Reserve rate cuts this year after the US labor market came in stronger than expected.
The bank now expects the Fed’s next two quarter-point cuts to happen in June and December 2027. Previously, Goldman had expected those cuts in December 2026 and March 2027.
The change followed May’s jobs report, which showed 172,000 new jobs, nearly double market expectations of 88,000 and well above April’s 115,000.
The unemployment rate held steady around 4.3%, while Goldman lowered its own year-end unemployment forecast to 4.4% from 4.6%.
Chief US economist David Mericle said the …
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