Goldman Sachs: The Fed may cut interest rates twice in 2026

According to a report by Golden Finance, Goldman Sachs Asset Management has released its 2026 investment outlook report. It mentions that the central bank policies in major markets may diverge. Given the weak labor market, Goldman Sachs Asset Management expects the Fed to potentially cut interest rates twice in 2026. The European Central Bank is likely to maintain interest rates unchanged in the foreseeable future, while the Bank of England may resume rate cuts in December amid improving inflation, a relatively weak labor market, and potential tax increases. High inflation and strong growth in Japan may prompt the Bank of Japan to raise interest rates, and recent political changes and a shift towards expansionary fiscal policy further reinforce this direction.