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Goldman Sachs pushes back Fed rate cut forecast amid Mideast conflict
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Goldman Sachs pushes back Fed rate cut forecast amid Mideast conflict
Mar 11, 2026 10:15 PM

March 12 (Reuters) - Goldman Sachs ( GS ) has delayed its forecast for U.S. 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 U.S. 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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