Will there be an Interest rate cut this year? Goldman Sachs revised its FED interest rate forecast and announced its expectations!

In April, following US President Donald Trump's announcement of tariff rates on April 2, the US-China trade war escalated.

However, after the talks between the US and China over the weekend led to a decrease in tensions, Goldman Sachs updated its forecasts.

At this point, Goldman Sachs raised its 2025 growth forecast for the U.S. economy by 0.5 points to 1%, citing the easing of the U.S.-China trade war and recent developments.

It has reduced the probability of a 12-month recession to 35%.

The bank also revised the expectations for FED interest rate cuts and postponed the expectation of an interest rate cut from July to December.

At this point, Goldman Sachs stated that it expects a total of three interest rate cuts from the FED in 2025 and 2026. It predicted one of them in December instead of July, and the remaining two for March and June of next year. The bank had previously forecast three interest rate cuts for this year.

As is known, the US and China agreed on Monday to reduce customs duties for 90 days. Accordingly, the US reduced its customs duty on Chinese goods from 145% to 30%, while China reduced its customs duty on imported US products from 125% to 10%.