Goldman Sachs Expects Fed to Revamp Interest Rate Cut Forecast for 2025 Amid Economic Uncertainty.

Goldman Sachs has revised its forecast for 2025, expecting the Fed to cut interest rates. The Fed's decision to pause rate cuts was attributed to uncertainty surrounding the inflationary impact of tariffs. However, the firm predicts the Fed won't remain sidelined forever, citing the economy's risk. The Fed's dual mandate of low inflation and unemployment makes it difficult to balance rate hikes and cuts, which has been exacerbated by President Trump's tariffs.