Goldman Sachs has revised its forecast for Federal Reserve interest rate cuts, now expecting the first reduction to occur in September 2025 instead of December. The firm projects a total of 75 basis points in rate cuts this year, delivered through three 25 basis point reductions starting in September. This adjustment reflects softer-than-expected tariff impacts on inflation and ongoing disinflationary trends. Consequently, Goldman Sachs has lowered its estimate for the Fed's terminal policy rate to a range of 3.00% to 3.25%, down from the previous forecast of 3.50% to 3.75%. In contrast, Goldman Sachs has withdrawn its earlier prediction of a 25 basis point rate cut by the European Central Bank (ECB) in September 2025, now expecting the ECB to maintain its deposit rate at 2.00% throughout the year, an upward revision from the prior forecast of 1.75%. BNP Paribas has similarly revised its outlook, no longer anticipating any ECB policy rate cuts in 2025.