[Goldman Sachs: Strong Labor Market Leads to No Longer Expecting Fed Rate Cuts This Year] BlockBeats News, June 8 — Goldman Sachs economists stated that due to a stronger-than-expected labor market, they no longer anticipate the Federal Reserve will cut interest rates this year. The bank has postponed its forecast for the Fed's last two rate cuts from December 2026 and March 2027 to June and December 2027. However, Goldman Sachs Chief U.S. Economist Merrick noted that since inflation 'seems unlikely to become self-sustaining,' the likelihood of Fed rate hikes remains low. In May, U.S. job growth exceeded all expectations, demonstrating the resilience of the labor market and intensifying market bets on further rate hikes by the central bank. Goldman Sachs continues to believe the probability of rate hikes is low but has raised the likelihood of a small rate hike from 10% to 20%. The bank's baseline forecast still predicts two 25-basis-point rate cuts next year, though the probability has been lowered from 40% to 30%. Goldman Sachs has also revised its forecast for the U.S. unemployment rate this year, lowering it from the previous 4.6% to 4.4%. [Original Link]