Goldman Sachs Research summarizes its latest projections for the Fed and ECB rates.

"In the US, we expect real GDP growth of 2.1% on a Q4/Q4 basis in 2026, reflecting subdued consumer spending growth but a boost from the Al boom via higher equity wealth as well as strong capex.  We expect the unemployment rate to end 2026 at 4.4%...We expect the Fed to leave the policy rate unchanged at 3.5-3.75% for the rest of 2026," GS nots.

"In the Euro area, we expect real GDP growth of 0.8% on a Q4/Q4 basis in 2026, reflecting resilient activity data but ongoing headwinds from elevated energy prices as well as subdued consumer confidence...We expect the ECB to deliver one more 25bp hike in September to a peak policy rate of 2.5%, although the risks are skewed toward further tightening," GS adds.