Societe Generale Upgrades US Growth Outlook, Expects Delayed Fed Rate Cuts

Societe Generale has revised its US economic growth forecast upward for 2026 and beyond, citing unexpected resilience in the macro economy. This adjustment follows exceptionally strong labor market data recorded in January, which has significantly reshaped market expectations. According to economist Jan Groen, this sustained economic strength is likely to prompt the Federal Reserve to maintain higher interest rates for a longer period than previously anticipated. The bank suggests that the urgency for monetary easing has diminished as the labor market remains robust and economic performance stabilizes. Consequently, the anticipated timeline for the first rate cut has been pushed back, providing a bullish tailwind for the US Dollar. Investors are now closely monitoring how these revised projections will influence bond yields and global markets in the coming months.