The markets may have to brace for another volatile period as Goldman Sachs predicts another rate cut might shake the markets before year-end. Per the latest report released by the banking giant, a December rate cut might very well be on the cards for the Fed, as USD economic indicators are still projecting a jittery scenario.
Also Read: 5 Bold Bitcoin Predictions for 2026: Including a $200K Price Target
Goldman Sachs Predicts A Dec’ Rate Cut
Per the latest report by Goldman Sachs, a December rate cut is a strong possibility, as markets continue to display weaknesses. The banking giant shared how 2026 may bring in additional rate cuts, starting with a 25-basis-point cut in March and June next year.
“While the press conference played out somewhat differently than we expected, we have not changed our Fed forecast and continue to see a December cut as quite likely,” David Mericle, chief US economist, writes in the team’s report. Goldman Sachs Research also expects two 25-basis-point cuts in March and June 2026 to a terminal rate of 3-3.25%.” As quoted by the report
The report outlines how labor market data may portray an element of asymmetry, driving a narrative towards a possible December rate cut.
“Labor market data are ‘unlikely to send a convincingly reassuring message’ by the time of the FOMC meeting in December,” Mericle adds. Goldman Sachs Research sees signs that the weakness in the US job market “is genuine.” In addition, deferred resignations of government employees instigated by the Department of Government Efficiency are likely to generate a negative payroll report in October and “weigh a bit on November,” Mericle writes.
Will the December Rate Cut Help Crypto Markets Boom?
Federal rate cuts have always been reassuring for the cryptocurrency markets. The crypto market at present is in its recovery phase, as the US government shutdown orders seem to be phasing out. Rate cuts in general weaken the US dollar, bolstering investor sentiment towards safe-haven assets such as Bitcoin and gold.
Also Read: Fed Rate Cut, China Trade Deal, Big Tech Lift Dow Futures
