Goldman Sachs has postponed its forecast for interest rate cuts by the U.S. Federal Reserve, now projecting reductions of a quarter percentage point in September and December, citing increased inflation risks related to the Middle East conflict. The U.S. bank had previously anticipated rate cuts beginning in June, followed by another in September. In a note released on Wednesday, Goldman Sachs stated, "Based on our higher revised inflation forecasts, a June start to rate cuts now appears premature," while adding that earlier cuts remain possible if the labor market weakens sooner and more significantly than expected.
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