Goldman Sachs Predicts Two More Fed Rate Cuts This Year, Says Market Overestimating Hiking Risk

BlockBeats News, April 2nd, despite the market's recent shift in focus towards the Fed's narrative on rate hikes. But Goldman Sachs' baseline predicts two rate cuts in 2026. And cites four main reasons to suggest that the market is overly concerned:

1. The current oil shock is less severe than in the past;

2. Labor market slowing and wage growth deceleration will cushion the impact of inflation;

3. The current Fed interest rate level is roughly in line with the benchmark level;

4. The Fed typically does not adjust rates solely due to oil price shocks.