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Goldman Sachs delays Federal Reserve rate cut forecast until the end of the year, lowering the likelihood of a U.S. recession

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2025-05-12 20:47:38
On May 13, Goldman Sachs adjusted its forecast for the next Federal Reserve rate cut to December (previously expected to be July). Analysts at the bank said: "In light of developments and the significant easing of financial conditions last month, we have raised our US economic growth forecast for the fourth quarter of 2025 by an annualized rate of 0.5 percentage points to 1% and reduced the probability of a recession over the next 12 months to 35%. At the same time, we have lowered our core personal consumption expenditures (PCE) inflation path forecast to a peak of 3.6% (previously expected 3.8%)."
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