Goldman Sachs Research revises its Fed rate outlook and no longer expects rate cuts this year.

"We are pushing the final two rate cuts in our Fed forecast back to June and December of 2027. The labor market has been stronger than we anticipated, and we now expect the unemployment rate to rise only a touch further to 4.4%, not enough to create a sense of urgency to lower rates. As a result, we think the most natural path for the FOMC is to delay further cuts until the effects of tariffs, the war, and Al demand have faded and core PCE inflation nears 2%," GS notes.

"We continue to see rate hikes as unlikely, though somewhat more likely than we initially thought...We have left our terminal rate forecast at 3-3.25%, largely because the FOMC's longer-run dots have been stable over the past year and most participants envision further normalization," GS adds.