The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
Goldman Sachs has pushed back its forecast for the first Federal Reserve interest rate cut to December 2026. The significant delay is attributed to persistent US inflation, which is being driven by the ongoing conflict with Iran. According to reports, this revision marks a major shift in the bank's expectations for the trajectory of American monetary policy.
Sign in to access this content
Sign InThis hawkish shift coincides with economic data showing continued resilience; labor market data from May 6, 2026, revealed that ADP Employment Change reached 109k, exceeding the 99k forecast and providing the Fed with more room to maintain high rates. Furthermore, market analysts note that global energy prices have faced sharp volatility due to geopolitical tensions, pushing living costs well above official targets.
Technically, traders are monitoring US Treasury yields, which may face upward pressure following these revised forecasts. Looking ahead, investors should watch upcoming Fed official speeches for further policy clues, especially as Initial Jobless Claims stood at 200k (as of May 7, 2026), indicating a labor market that remains robust despite inflationary headwinds.