Key facts
- Goldman Sachs economists no longer expect the Federal Reserve to cut interest rates this year.
- The revision is due to a stronger-than-expected labor market.
Goldman Sachs Group Inc. economists have withdrawn their previous expectation of a Federal Reserve interest rate cut occurring within this year. The decision stems from an analysis of the U.S. labor market, which has demonstrated greater strength than anticipated.
This recalibration of the economic outlook suggests that the conditions necessary for the Fed to begin easing monetary policy have not yet materialized, according to the investment bank's strategists.