Goldman Sachs: The Federal Reserve is highly likely to keep interest rates unchanged in 2026, and inflation will ease in the second half of the year.

Matthew Dybou, head of investment strategies for Goldman Sachs Europe, the Middle East, and Africa, stated that the Federal Reserve is likely to maintain interest rates unchanged throughout 2026, with inflation risks expected to ease in the second half of this year. Dybou said on Wednesday, "It is clear that the market is still pricing in rate hikes, but we do not agree. We believe the Fed will keep interest rates steady for the foreseeable future." He noted that the rise in inflation data at the beginning of the year was driven by oil prices, the World Cup, and tariff factors, and currently, there are almost no signs that inflation will fully spread throughout the remainder of 2026. He added that, based on trends in the real estate market, housing inflation is expected to cool. "We do not believe that wages will be the main source of inflationary pressure, as the U.S. labor market is far from thriving."