Goldman Sachs delays Fed rate cut outlook to December 2026 amid inflation pressures

Goldman Sachs has shifted its forecast for the Federal Reserve's first interest rate cut to December 2026, with further reductions projected for March 2027. This delay is attributed to inflation remaining at 2.9%, significantly above the 2% target, exacerbated by energy supply chain issues stemming from the conflict in Iran. Furthermore, a resilient labor market continues to sustain wage pressures, reducing the immediate incentive for the Fed to ease monetary policy. Goldman Sachs even notes a 44% probability of a rate hike by April 2027. While Bitcoin has shown resilience at the $80,000 level due to institutional support and spot ETFs, the firm warns that prolonged high interest rates and potential further hikes could restrict liquidity and act as a headwind for digital assets.

(Source：Crypto Briefing)