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Goldman, BofA Predict Fed Rate Cuts Delayed Until 2027

May 9, 2026

Summary

Goldman Sachs pushed back its expectations for the US Federal Reserve's next two rate cuts to December 2026 and March 2027 due to persistent inflation. Bank of America also predicts delayed cuts until 2027, citing a 'hawkish' Fed and stubbornly high inflation.

How coverage differs

  • Left: Hawkish Fed, Stubborn Inflation Push Rate Cuts to 2027 Left-leaning outlets highlight Bank of America's prediction that the Federal Reserve will not cut interest rates until 2027, emphasizing the role of 'stubbornly high inflation' and a 'hawkish' Fed. Coverage focuses on the broader economic implications for consumers and the market.
  • Center: Fed Lacks Reasons for Cuts Amid Rising Cost of Living Center outlets report on the Federal Reserve's current dilemma, noting it is 'running out of reasons' to cut interest rates amid persistent inflation and strong economic data. Coverage provides a neutral analysis of the factors influencing the Fed's monetary policy decisions.

Coverage by lane

Left

  • Fed unlikely to cut interest rates until 2027, Bank of America says

Center

  • The Federal Reserve is quickly running out of reasons to cut interest rates

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