Goldman Sachs shifts Fed rate-cut view after resilient jobs data

Goldman Sachs economists said a stronger-than-expected U.S. labor market has led the firm to drop its call for Federal Reserve rate cuts this year, CNBC reported. The bank also delayed its projected timing for the Fed's final two cuts, moving them from December 2026 and March 2027 to June 2027 and December 2027. Goldman's Chief U.S. Economist Melik said the odds of a rate hike remain low, but the probability of a small hike has increased to 20% from 10%. The firm trimmed its 2026 U.S. unemployment forecast to 4.4% from 4.6%.