--- title: "Goldman Sachs has postponed the Federal Reserve's interest rate cut to December and raised its forecast for U.S. economic growth this year to 1%" description: "Goldman Sachs has pushed back the Federal Reserve's rate cut timeline to December and expects three rate cuts. As the U.S. economy shows robust growth and the rise in unemployment slows, the rationale" type: "news" locale: "en" url: "https://longbridge.com/en/news/239930334.md" published_at: "2025-05-13T00:29:56.000Z" --- # Goldman Sachs has postponed the Federal Reserve's interest rate cut to December and raised its forecast for U.S. economic growth this year to 1% > Goldman Sachs has pushed back the Federal Reserve's rate cut timeline to December and expects three rate cuts. As the U.S. economy shows robust growth and the rise in unemployment slows, the rationale for rate cuts has shifted towards normalization. Meanwhile, Goldman Sachs has raised its U.S. economic growth forecast for this year to 1% and lowered the probability of a recession to 35% Goldman Sachs has postponed the Federal Reserve's next interest rate cut from July to December, and will implement three rate cuts, but will do so at alternate meetings rather than consecutively at three meetings. Goldman Sachs stated that due to the relatively robust growth of the U.S. economy, a slight slowdown in the rise of the unemployment rate, and a decreased urgency for policy support, the rationale for the Fed's rate cuts has shifted from "providing insurance" to "normalization." With the easing of the U.S.-China trade war, Goldman Sachs has raised its U.S. economic growth forecast for this year by 0.5 percentage points to 1%, and has lowered the probability of an economic recession within the next 12 months to 35% ### Related Stocks - [GS.US - Goldman Sachs](https://longbridge.com/en/quote/GS.US.md) ## Related News & Research | Title | Description | URL | |-------|-------------|-----| | Goldman Sachs Group cuts total voting rights in Nordex SE to 3.15% | Goldman Sachs Group has reduced its voting rights in Nordex SE from 8.08% to 3.15%, a decrease of 4.93 percentage points | [Link](https://longbridge.com/en/news/275597170.md) | | Goldman Sachs plans to drop diversity factors from board candidate criteria, WSJ reports | Feb 16 (Reuters) - Goldman Sachsis preparing to remove race, gender identity, sexual orientation, and other diversity fa | [Link](https://longbridge.com/en/news/276088526.md) | | Hazoor Multi Projects Awarded LoA By NHAI | Hazoor Multi Projects Ltd :AWARDED LOA BY NHAIORDER WORTH 442.4 MILLION RUPEES | [Link](https://longbridge.com/en/news/276092788.md) | | Goldman Sachs Group Raises Total Voting Rights in Kontron AG to 4.48% | Goldman Sachs Group has increased its total voting rights in Kontron AG from 4.43% to 4.48%, marking a rise of 0.05 perc | [Link](https://longbridge.com/en/news/276106817.md) | | Top Goldman Sachs lawyer Kathy Ruemmler to resign over Epstein links, Financial Times reports | Feb 12 (Reuters) - Goldman Sachsgeneral counsel Kathy Ruemmler said she will resign this summer after documents released | [Link](https://longbridge.com/en/news/275833457.md) | --- > **Disclaimer**: This article is for reference only and does not constitute any investment advice.