Goldman Sachshas delayed its forecast for US Federal Reserve rate cuts, and now expects quarter-point reductions in September and December, citing rising inflation risks linked to the Middle East conflict.
The US bank had earlier projected rate cuts beginning in June, followed by another reduction in September.
“A June start now looks too early under our higher revised inflation forecast”, Goldman said in a note on Wednesday, adding that earlier cuts are still possible if the labor market weakens sooner and more substantially than expected.
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