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Goldman Sachs trims Fed rate cut outlook to 2027
Goldman Sachs Bank expects the Federal Reserve to maintain interest rates until 2026 and delay any cuts until 2027, based on improved economic activity and a strong labor market following a robust employment report. The bank clarified that the most likely path is to postpone rate reductions until the effects of geopolitical tensions and rising oil prices diminish, as inflation approaches the 2% target. These projections come amid increasing odds of interest rate hikes during the year, currently at 75.5%.
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