Goldman Sachs Asset Management's latest analysis predicts that the Federal Reserve may cut interest rates twice in 2026.

On November 18th, Goldman Sachs Asset Management released its 2026 investment outlook report. It mentioned that central bank policies in various major markets may diverge. Due to the weak labor market, Goldman Sachs Asset Management predicts that the Federal Reserve may cut interest rates twice in 2026. The European Central Bank may keep interest rates unchanged in the near future, while the Bank of England may resume cutting interest rates in December amid improving inflation, relatively weak labor market, and potential tax hikes. With high inflation and strong growth, the Bank of Japan may raise interest rates, with recent political changes and a shift towards loose fiscal policy further reinforcing this direction.