Goldman Sachs now anticipates the U.S. Federal Reserve will maintain current interest rates through 2026, delaying any rate cuts until 2027. This shift, driven by robust economic and job growth, suggests a prolonged pause by the central bank. The firm cited stronger-than-expected payroll data and the need for inflationary pressures to subside as key factors.

Citigroup's Andrew Hollenhorst maintains his forecast for three Fed rate cuts in 2026 despite May's 172,000 nonfarm payrolls beating all estimates.

Goldman Sachs revises forecast, no longer expecting Fed interest-rate cuts this year amid strong US job growth data.