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Goldman Sachs pushes US Fed rate cuts to December 2026 as Iran war lifts inflation pressures
Economy
Published on 11 May 2026
Energy shocks are now expected to keep inflation sticky past target
Goldman Sachs has delayed its outlook for U.S. Federal Reserve rate cuts, now forecasting cuts only in December 2026 and March 2027. The bank cites higher energy prices tied to the Iran conflict, which it expects to keep inflation above the Fed’s target for longer. The move signals increased caution as policymakers weigh inflation persistence against cooling growth risks.
- Goldman shifts Fed cut timing to December 2026 and March 2027
- Previous outlooks pointed to earlier 2024 cuts
- Middle East conflict is pushing energy prices higher
- Inflation risk may keep rates elevated longer
Read the full story at The Economic Times
This summarization was done by Beige for a story published on 
The Economic Times