Goldman Sachs has revised its U.S. interest-rate outlook and now expects the Federal Reserve to cut the federal-funds rate three times this year, beginning in September and followed by moves in October and December. The bank had previously anticipated fewer reductions. Analysts at the firm said the change reflects a rapid cooling in the labor market, with non-farm payroll growth slowing to roughly 30,000 jobs a month—well below the 80,000 positions they estimate are needed to keep employment stable. They added that subsequent data revisions are likely to show even weaker hiring momentum. Investors are already positioning for easier policy. Money-market futures assign about an 85% probability to a 25-basis-point cut at the Fed’s September meeting. Hedge funds bought U.S. equities at the fastest pace in seven weeks during the period to Aug. 15, according to a Goldman client note cited by Reuters. Separately, Josh Schiffrin, head of banking strategy at the firm, said five-year U.S. Treasuries offer attractive yields and a defensive hedge ahead of the anticipated easing cycle.