Goldman Sachs economists currently expect the Federal Reserve to delay cutting interest rates.

Goldman Sachs economists have lowered their forecast for the Fed's accommodative policy in 2026. The bank's economic team now expects the Fed to only cut interest rates once this year, in December, instead of the two cuts in September and December as previously predicted by Goldman Sachs. Goldman Sachs has delayed its forecast for a second rate cut until the first quarter of 2027. Goldman's David Mericle predicts that, due to continued energy price pressures from the Iran war, the personal consumption expenditure price index may increase closer to 3% this year, rather than 2%. "We do think there is a reasonable chance that if the economy remains robust throughout the year at the current federal funds rate, more FOMC participants may increase their estimates of the neutral rate and conclude that there is no need for further rate cuts," he wrote.