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Why the Fed May Cut Rates Earlier Than Expected
The Federal Reserve may cut its policy rate in September, according to Goldman Sachs Research economists, three months earlier than they had previously forecast. Goldman Sachs Research shifted its forecast for rate cuts because very early evidence suggests the effects of this year’s tariff policies are a bit smaller than expected and other disinflationary forces have been stronger. Fed leadership may also share our economists’ view that tariffs will only have a one-time effect on price levels. In addition, there are signs that the job market could be softening: “While the labor market still looks healthy, it ... (full story)