Fed Cut Outlooks

BofA and Goldman Sachs pushed back Fed rate-cut forecasts as higher energy prices and stronger jobs data raised inflation concerns.

Transcript

00:00It's Benzinga, bringing Wall Street to Main Street.

00:02BOFA Global Research and Goldman Sachs pushed back their forecasts for U.S. Federal Reserve

00:07rate cuts as higher energy prices and a stronger labor market raised inflation concerns,

00:12according to Reuters. BOFA now expects the Fed to hold rates steady through 2026 and cut rates

00:19by 25 basis points in July and September 2027. Goldman Sachs now expects cuts in December 2026

00:27and March 2027, after previously forecasting a first cut in September 2026.

00:34The revised forecasts follow higher energy prices tied to the 10-week Middle East war

00:39and stronger-than-expected April jobs data. The Fed held rates steady at its April 29th meeting

00:45in an 8-4 vote. Traders expect rates to remain in the 3.50% to 3.75% range

00:52through year-end.

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