BofA and Goldman push back Fed easing forecasts amid inflation risks
Economic Times reported on May 12 that major Wall Street brokerages have delayed their expectations for Federal Reserve rate cuts, as high energy prices and a strong labour market keep inflation concerns elevated.
At a glance
- BofA expects no Fed rate cuts in 2026 and sees easing only in mid-2027
- Goldman Sachs moved its expected first rate cut from September to December 2026
- High energy prices and a strong labour market are keeping inflation concerns elevated
VERDICT — CONFIRMED
Major Wall Street brokerages have pushed back their expectations for Federal Reserve rate cuts, Economic Times reported on May 12, as high energy prices and a strong labour market keep inflation concerns elevated.
Bank of America now expects no cuts at all in 2026, forecasting easing only in mid-2027, per the report. Goldman Sachs moved its expected start of rate cuts from September to December 2026.
The two revisions point the same direction but differ in severity: Goldman's shift is a one-quarter delay within 2026, while BofA's removes this year's easing entirely and pushes the first cut more than a year out.
The forecasts are the brokerages' own projections as relayed by Economic Times, not Federal Reserve guidance. The underlying research notes, and any accompanying terminal-rate or inflation forecasts, were not included in the material reviewed. Forecast revisions of this kind are routinely updated as data arrives.
Key facts on file
- BofA expects no Fed rate cuts in 2026 and sees easing only in mid-2027
- Goldman Sachs moved its expected first rate cut from September to December 2026
- High energy prices and a strong labour market are keeping inflation concerns elevated
