<div id="readability-page-1">Goldman’s cautious stance: Goldman Sachs expects rate cuts only by late 2026, citing persistent inflation, elevated energy prices, and a strong labor market. Citi’s narrower view: Citi argues inflation is limited to a few sectors and lacks the broad-based spread seen in past cycles, suggesting it may be temporary. Why it matters: The Fed’s policy path could hinge on whether inflation proves persistent or fades, shaping bond yields, mortgage rates, and investor strategies.</div>

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<p>Goldman Sachs and Citigroup hold divergent views on inflation as the Federal Reserve considers its next policy moves. Goldman Sachs anticipates rate cuts only by late 2026, citing persistent inflation, high energy prices, and a robust labor market. Conversely, Citigroup argues that inflation is sector-specific and temporary, lacking broad-based spread. This disagreement highlights the uncertainty surrounding Fed policy, which will significantly impact bond yields, mortgage rates, and investor strategies.</p>

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Goldman and Citi split on inflation outlook as Fed weighs options