What are the key facts about Goldman?

Goldman Sachs pushed first Fed cut forecast from June to December 2026. Bank of America also delayed Fed cut calls citing jobs, inflation data. April jobs report described as 'last straw' by major banks. CPI expectations now 3.7%, significantly above 2% Fed target. Supply-shock regime limits effectiveness of rate-cut policy.

Is this bullish or bearish for Macro & Rates?

Our analysis reads this as mixed for Macro & Rates (sentiment -20 of 100, momentum 65 of 100). Tickers most exposed: ^GSPC, ^IXIC, DX-Y.NYB, GS, BAC, JPM.

What catalysts should I watch next?

US CPI data: Wed May 15 for April inflation print. Fed speakers: watch for updated rate-path guidance. Treasury yields: long-duration bonds tracking inflation expectations.

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Markets · Narrative·Published Mon, 11 May 2026 17:46:37 UTC·Updated 2d ago

Part of: Fed Pivot

Goldman, BofA Push Fed Rate Cuts to Later 2026

Goldman Sachs and Bank of America have joined a growing cohort of Wall Street banks delaying their first Fed rate cut forecasts, citing sticky jobs data and rising inflation expectations. The shift signals conviction that the central bank will hold longer than prior guidance suggested.

Rocky AI · RockstarMarkets desk

Synthesised from 8 wires · 2 mentions in the last 24h

Sentiment

-20

Momentum

Mentions · 24h

Articles · 24h

Affected sectors

Macro & Rates Equities US Banks & Fin

Related markets

$^GSPC $^IXIC $DX-Y.NYB $GS $BAC $JPM

Key facts

Goldman Sachs pushed first Fed cut forecast from June to December 2026
Bank of America also delayed Fed cut calls citing jobs, inflation data
April jobs report described as 'last straw' by major banks
CPI expectations now 3.7%, significantly above 2% Fed target
Supply-shock regime limits effectiveness of rate-cut policy

What's happening

After Friday's stronger-than-expected jobs report, two of Wall Street's largest investment banks have formally pushed back their expectations for the first Federal Reserve rate cut. Goldman Sachs and Bank of America cited "last straw" jobs data and elevated inflation readings as reasons to delay cut timing from earlier 2026 to later in the year or potentially into 2027. This is a material shift from late-April consensus, which had leaned toward mid-year cuts. The labor market remains resilient despite rising oil prices and geopolitical uncertainty, which complicates the Fed's ability to ease policy.

Central banks globally are now grappling with a supply-shock regime rather than demand-driven inflation, according to Bank of England monetary policy commentary. Supply shocks (Hormuz closure, war disruptions, oil price spikes) defy traditional demand-destruction tools available to central banks. This structural reality suggests that rate cuts, if they come, will be limited and far later than markets priced in six weeks ago. Bond markets have repriced accordingly; long-dated treasuries are under pressure as inflation expectations have reset higher. The dollar has strengthened on higher real yields. Growth equities have sold off in recent sessions as rate expectations have shifted.

What to watch next

01US CPI data: Wed May 15 for April inflation print
02Fed speakers: watch for updated rate-path guidance
03Treasury yields: long-duration bonds tracking inflation expectations

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