Story perspectives
Goldman Sachs Predicts Fed Rate Cut Amid Disinflation
7/9/2025
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Story summary
- Goldman Sachs anticipates a Federal Reserve rate cut in September, adjusting the terminal rate to 3-3.25%.
- Disinflation trends, such as slower wage growth and decreased travel demand, bolster this prediction.
- Lower borrowing costs may favor rate-sensitive sectors like technology and real estate.
- However, risks persist, including unexpected inflation and shifts in Fed leadership.
- Investors must closely watch inflation data as Fed policies adapt.
