Goldman Sachs forecasts three Federal Reserve rate cuts by 2026. Analysts expect easing policy to boost cryptocurrency and market liquidity. Fed aims for a terminal rate between three and 3.25 %. Goldman Sachs Research has projected that the United States Federal Reserve will deliver three interest rate cuts, signaling a cautious turn toward monetary easing. According to the firm, the first reduction is expected in December, followed by two more in 2026, consistent with its previous outlook. Chief US economist David Mericle stated that the forecast remains in line with the bank’s earlier expectations despite Jerome Powell’s hawkish remarks during his recent press conference. He noted that Powell’s tone may reflect internal differences within the Federal Open Market Committee regarding the timing of policy adjustments. Also Read: Stellar’s XLM Faces Prolonged Compression as Analyst Sees Major Breakout Potential Fed’s Terminal Rate Target and Economic Outlook Goldman Sachs expects the Federal Reserve to reach a terminal rate of between 3% and 3.25% by June 2026. This suggests a gradual approach to easing monetary policy while maintaining control over inflation and supporting economic stability. Mericle explained that the projected cuts align with the bank’s original path for rate normalization. He added that the anticipated easing will likely help balance growth and financial conditions after a period of tighter credit. Impact on Cryptocurrency and Financial Markets Market analysts believe the prospect of lower interest rates could boost digital asset prices as liquidity conditions improve. Lower borrowing costs generally encourage investments in riskier assets, including cryptocurrencies, while reducing yields on traditional instruments. Additionally, weaker returns from government bonds and equities may drive investors toward alternative markets with higher potential rewards. Analysts also note that a softer US dollar, resulting from reduced rates, could enhance Bitcoin’s appeal as a store of value. Bitcoin recently experienced a brief pullback after reaching a record high of $126,272 in early October, according to data from TradingView. However, many analysts expect renewed upward momentum in both Bitcoin and altcoins as liquidity flows increase and sentiment strengthens across the market. Also Read: XRP Faces Strong Technical Pressure as Death Cross Signals Further Downside The post Goldman Sachs Predicts Three Interest Rate Cuts as Fed Prepares to Ease Policy appeared first on 36Crypto. Goldman Sachs forecasts three Federal Reserve rate cuts by 2026. Analysts expect easing policy to boost cryptocurrency and market liquidity. Fed aims for a terminal rate between three and 3.25 %. Goldman Sachs Research has projected that the United States Federal Reserve will deliver three interest rate cuts, signaling a cautious turn toward monetary easing. According to the firm, the first reduction is expected in December, followed by two more in 2026, consistent with its previous outlook. Chief US economist David Mericle stated that the forecast remains in line with the bank’s earlier expectations despite Jerome Powell’s hawkish remarks during his recent press conference. He noted that Powell’s tone may reflect internal differences within the Federal Open Market Committee regarding the timing of policy adjustments. Also Read: Stellar’s XLM Faces Prolonged Compression as Analyst Sees Major Breakout Potential Fed’s Terminal Rate Target and Economic Outlook Goldman Sachs expects the Federal Reserve to reach a terminal rate of between 3% and 3.25% by June 2026. This suggests a gradual approach to easing monetary policy while maintaining control over inflation and supporting economic stability. Mericle explained that the projected cuts align with the bank’s original path for rate normalization. He added that the anticipated easing will likely help balance growth and financial conditions after a period of tighter credit. Impact on Cryptocurrency and Financial Markets Market analysts believe the prospect of lower interest rates could boost digital asset prices as liquidity conditions improve. Lower borrowing costs generally encourage investments in riskier assets, including cryptocurrencies, while reducing yields on traditional instruments. Additionally, weaker returns from government bonds and equities may drive investors toward alternative markets with higher potential rewards. Analysts also note that a softer US dollar, resulting from reduced rates, could enhance Bitcoin’s appeal as a store of value. Bitcoin recently experienced a brief pullback after reaching a record high of $126,272 in early October, according to data from TradingView. However, many analysts expect renewed upward momentum in both Bitcoin and altcoins as liquidity flows increase and sentiment strengthens across the market. Also Read: XRP Faces Strong Technical Pressure as Death Cross Signals Further Downside The post Goldman Sachs Predicts Three Interest Rate Cuts as Fed Prepares to Ease Policy appeared first on 36Crypto.

Goldman Sachs Predicts Three Interest Rate Cuts as Fed Prepares to Ease Policy

  • Goldman Sachs forecasts three Federal Reserve rate cuts by 2026.
  • Analysts expect easing policy to boost cryptocurrency and market liquidity.
  • Fed aims for a terminal rate between three and 3.25 %.

Goldman Sachs Research has projected that the United States Federal Reserve will deliver three interest rate cuts, signaling a cautious turn toward monetary easing. According to the firm, the first reduction is expected in December, followed by two more in 2026, consistent with its previous outlook.


Chief US economist David Mericle stated that the forecast remains in line with the bank’s earlier expectations despite Jerome Powell’s hawkish remarks during his recent press conference. He noted that Powell’s tone may reflect internal differences within the Federal Open Market Committee regarding the timing of policy adjustments.


Also Read: Stellar’s XLM Faces Prolonged Compression as Analyst Sees Major Breakout Potential


Fed’s Terminal Rate Target and Economic Outlook

Goldman Sachs expects the Federal Reserve to reach a terminal rate of between 3% and 3.25% by June 2026. This suggests a gradual approach to easing monetary policy while maintaining control over inflation and supporting economic stability.


Mericle explained that the projected cuts align with the bank’s original path for rate normalization. He added that the anticipated easing will likely help balance growth and financial conditions after a period of tighter credit.


Impact on Cryptocurrency and Financial Markets

Market analysts believe the prospect of lower interest rates could boost digital asset prices as liquidity conditions improve. Lower borrowing costs generally encourage investments in riskier assets, including cryptocurrencies, while reducing yields on traditional instruments.


Additionally, weaker returns from government bonds and equities may drive investors toward alternative markets with higher potential rewards. Analysts also note that a softer US dollar, resulting from reduced rates, could enhance Bitcoin’s appeal as a store of value.


Bitcoin recently experienced a brief pullback after reaching a record high of $126,272 in early October, according to data from TradingView. However, many analysts expect renewed upward momentum in both Bitcoin and altcoins as liquidity flows increase and sentiment strengthens across the market.


Also Read: XRP Faces Strong Technical Pressure as Death Cross Signals Further Downside


The post Goldman Sachs Predicts Three Interest Rate Cuts as Fed Prepares to Ease Policy appeared first on 36Crypto.

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