Goldman Sachs predicts third Fed rate hike in March 2027, cuts in December 2027

Goldman Sachs forecasts a third Federal Reserve rate hike in March 2027, followed by rate cuts beginning in December 2027. The call extends the bank’s outlook for U.S. monetary policy through 2028 and implies a longer stretch of restrictive rates than markets may currently expect. The forecast matters because higher-for-longer borrowing costs can pressure risk assets, including crypto, and shape investment and economic planning well beyond the near term. What to watch next is whether incoming inflation and labor data push other major banks to align with Goldman’s timeline or retain a faster path to easing.