Goldman Sachs has revised its forecast, predicting that the Federal Reserve will cut interest rates three times this year due to the negative impact of President Trump’s tariffs on economic growth. Economists led by Jan Hatzius now anticipate cuts in July and September, with a third cut expected in November.
Earlier predictions had called for two cuts this year and one in 2026, but the revised forecast takes into account lower European Union growth forecasts, which have strengthened expectations of an ECB rate cut in April and June. The latest projections also suggest a further 0.25 percentage-point reduction in July.
Source: https://www.bloomberg.com/news/articles/2025-03-30/goldman-sees-more-fed-cuts-this-year-as-tariffs-dent-us-growth