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Expect Tough Love from Fed’s Powell, Says Goldman Sachs
The Federal Reserve is almost certain to slice borrowing costs tomorrow, if trading in interest-rate markets is to be believed. But the central bank’s main message may be that it isn’t guaranteed to keep cutting in 2026.
Fed Chair Jerome Powell will likely convey that the bar for future cuts has risen, and explain why some participants opposed a cut, say Goldman Sachs analysts. The investment bank reckons two officials will oppose cutting rates on Wednesday, and that five will lay out hawkish rate projections on the so-called dot plot.
The Fed can’t box itself in, given the dearth of up-to-date economic data, but “a January cut could turn out to be appropriate,” the Goldman analysts said.
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