Goldman Sachs predicts that the Federal Reserve will cut interest rates by 25 basis points in June and December this year

ChainCatcher news, according to Jinshi, the U.S. economy is in a "sweet spot," but the market may be overly pessimistic about the pace of interest rate cuts by the Federal Reserve. Goldman Sachs chief economist Jan Hatzius stated in a new report released on Monday that the key issue for monetary policy is how strongly the Trump administration implements its import tariff agenda.

Goldman Sachs predicts that the Federal Reserve will cut interest rates by 25 basis points twice this year, in June and December, and will cut rates again in 2026.

Jan Hatzius said, "But the risks around this forecast are generally tilted toward further easing, partly because even if the economy performs well, the Federal Open Market Committee (FOMC) may decide to cut rates before June, and partly because while a significant rate cut by the FOMC in the event of a sharp deterioration in economic data or risk sentiment is unlikely, it is far from out of reach."