Goldman Sachs predicts the Federal Reserve will cut interest rates twice more this year, stating that the market is overly concerned about rate hikes.

MarsBitNews · 2026-04-02T04:14:37+00:00

Mars Finance reports that on April 2nd, despite the market's recent shift in narrative around the Federal Reserve towards rate hikes, Goldman Sachs' baseline forecast still predicts two rate cuts by 2026. They list four main reasons suggesting the market is overly worried: 1. The current oil shock is less severe than past ones; 2. A slowdown in the labor market and wage growth will buffer inflation impacts; 3. The current Federal Reserve interest rate level is roughly in line with the baseline; 4. The Federal Reserve typically does not adjust rates solely due to oil price shocks.

MarsBitNews

2026-04-02 04:14:37

Mars Finance news: On April 2, although the market narrative around the Federal Reserve has recently shifted toward rate hikes, Goldman Sachs’ baseline forecast still calls for two rate cuts in 2026. It also lists four reasons claiming that the market is overly worried: 1) the current oil shock is not as severe as in the past; 2) a cooling labor market and slower wage growth will cushion the impact on inflation; 3) the current Federal Reserve interest-rate level roughly matches the baseline level; 4) the Federal Reserve typically does not adjust rates solely due to an oil-price shock.

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