Goldman Sachs predicts that the Federal Reserve will cut interest rates in September this year, with three consecutive cuts to 3%-3.25%.

Gate News bot message, the Goldman Sachs economic research team released the latest forecast, stating that the Federal Reserve (FED) will begin to cut interest rates in September this year, with rate cuts of 25 basis points at the meetings in September, October, and December, adjusting the terminal interest rate target from 3.5%-3.75% to 3%-3.25%. Goldman Sachs analysts pointed out that the lower-than-expected impact of tariff inflation and a weak labor market are the main factors driving this decision.

Goldman Sachs analysts emphasize that if this week's employment data is poor, the chances of a rate cut will increase, but no action will be taken at the July meeting. Morgan Stanley analysts hold a different view, believing that the Federal Reserve (FED) will not cut rates in the near term, especially at the July meeting, and expect the upcoming employment report to remain robust.

Chicago Federal Reserve President Goolsbee stated that the current unemployment rate and inflation level in the United States are far below the stagflation levels of the 1970s, and tariffs or supply shocks are unlikely to trigger a similar crisis in the short term. Atlanta Federal Reserve President Bostic, on the other hand, expects the Federal Reserve to cut interest rates only once this year and pointed out that the overall impact of Trump's tariffs has yet to be seen.