Goldman Sachs Forecasts Fed Cuts at All Three Remaining 2025 Meetings

Goldman Sachs’ macro-economics team now expects the Federal Reserve to lower its benchmark rate by 25 basis points at each of the three remaining Federal Open Market Committee meetings in 2025—scheduled for September, October and December. The bank’s updated forecast also projects two further quarter-point reductions in 2026, which would bring the federal-funds rate to a terminal range of 3% to 3.25%. Goldman’s outlook reflects its view that inflation will continue to moderate and that economic growth will be resilient enough to allow the Fed to ease policy without reigniting price pressures.