Goldman Sachs predicts The Federal Reserve (FED) will cut interest rates in September, adjusting the terminal Intrerest Rate to 3%-3.25%.

[Bit推] Goldman Sachs expects the Federal Reserve (FED) to cut interest rates in September, three months earlier than previously predicted. This shift reflects some early signs that tariff-related inflation is milder than expected, while deflationary forces—including slowing wage growth and weakening demand—are beginning to take shape.

David Mericle, the chief economist at Goldman Sachs, estimates that the chances of a rate cut in September are slightly above 50%, anticipating cuts of 25 basis points in September, October, and December, with two more cuts expected in early 2026. Goldman Sachs has also lowered its terminal rate forecast from 3.5%-3.75% to 3%-3.25%.