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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
In a move reflecting a major shift in monetary policy expectations, Goldman Sachs has revised its US interest rate forecast, with analysts now expecting no rate cuts until June 2027. According to reports, the bank anticipates that interest rates will remain unchanged throughout the entirety of 2026 due to sustained economic growth and labor market resilience. This significant delay follows previous projections that suggested monetary easing could begin as early as late 2026.
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Sign InThis hawkish stance from Goldman Sachs comes as major peers show diverging views, with JPMorgan recently highlighting persistent inflation risks that could force the Fed to maintain higher rates for longer. Looking at banking sector performance, JPM shares closed at $1038.68 and Morgan Stanley at $211.93 (close June 5, 2026), reflecting relative stability in mega-cap bank valuations despite high-rate pressures per market data.
Traders are currently monitoring GS stock, which closed at $1,038.68 (close June 5, 2026), as it fluctuates between its recent low of $1,035.6 and a high of $1,098.36. Regarding the economic calendar, attention will turn to upcoming Fed official commentary, including a scheduled speech by Neel Kashkari on June 2, 2026, for further clues on the future path of monetary policy.