Goldman Sachs vice chairman warns Federal Reserve may skip interest rate cuts through 2026

May 1, 2026, 7:59:15 PM UTC(16 hours ago)
Impact: Medium
Goldman Sachs vice chairman warns Federal Reserve may skip interest rate cuts through 2026

Affected Assets

  • Goldman Sachs Vice Chairman Rob Kaplan stated that persistent economic uncertainty could lead the Federal Reserve to keep interest rates unchanged for the entirety of 2026
  • Market analysts point to rising inflation concerns and geopolitical tensions as primary drivers for the central bank's cautious stance
  • The potential for further tariffs and high energy costs has increased the likelihood of the Fed kicking the can on policy decisions during upcoming meetings
  • Incoming Fed leadership faces a divided board as officials become increasingly less inclined to support rate reductions amid volatile market conditions

Sources

If uncertainty persists, "there won't be any cuts in 2026," Goldman Sachs vice chairman @RobSKaplan says on the Federal Reserve. "There may not be any action at all." Without clarity, "they're going to keep kicking the can median after meeting," he adds. https://t.co/5SPsBn2edi
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Goldman Sachs vice chairman warns Federal Reserve may skip interest rate cuts through 2026 | Foxly Invest