Goldman Sachs Asset Management expects the Federal Reserve to extend its easing cycle with quarter-point cuts in both October and December, following Wednesday’s reduction. The firm said the skew of the Fed’s dot plot points to a steady pace of easing, underscoring policymakers’ confidence that inflation is trending lower and that growth risks are rising.
In Goldman’s view, only a sharp upside surprise in inflation or a sudden rebound in labour market strength would derail the Fed from delivering those additional cuts. Absent such shocks, the Fed appears committed to a gradual loosening path designed to balance inflation control with support for the economy.
The firm highlighted that the FOMC’s risk management framework now leans toward caution, with the majority of members signalling that policy should continue to shift toward less restrictive settings. That, it said, suggests further rate relief into year-end is the base case.
Goldman Sachs sees further Federal Open Market Committee (FOMC) cuts in 2026, another two.
