Goldman Sachs lowers its expectations for the amount of interest rate cuts by the US Federal Reserve in 2025.

On Monday evening, investment giant Goldman Sachs published an analytical memo outlining its new expectations for the trajectory of interest rates from the U.S. Federal Reserve amid anticipation of the release of the minutes from the Federal Open Market Committee meeting later this week, and markets' preparation for Trump's inauguration on January 20 and the tariffs he has pledged to impose on U.S. imports.

According to the memo, Goldman Sachs analysts have revised their expectations for the total interest rate cuts by the U.S. Federal Reserve in 2025, now forecasting total cuts of only 75 basis points this year, down from previous expectations of 100 basis points.

The main points in Goldman Sachs's memo regarding their expectations for interest rate cuts by the Federal Open Market Committee this year are as follows:

• We now expect a total of 75 basis points in cuts to federal interest rates during 2025, down from the previous estimate of 100 basis points.
• Goldman Sachs still believes that core inflation is trending downwards.
• However, Goldman Sachs remains somewhat uncertain that potential changes in Trump's policy and the tariffs he is set to impose could ultimately keep interest rates at higher levels.