PANews reported on June 8th that, according to Jinshi, Goldman Sachs economists stated that due to a stronger-than-expected labor market, they no longer anticipate a Federal Reserve rate cut this year. The bank has postponed its expectation for the Fed's last two rate cuts from December 2026 and March 2027 to June and December 2027. However, Goldman Sachs' chief U.S. economist, Merrick, pointed out that the likelihood of a Fed rate hike remains low, as inflation "seems unlikely to become self-sustaining." U.S. job growth in May exceeded all expectations, demonstrating the resilience of the labor market and intensifying market bets on a central bank rate hike. Goldman Sachs continues to believe a rate hike is unlikely, but has raised the probability of a small rate hike from 10% to 20%. The bank's baseline forecast still expects two 25-basis-point rate cuts next year, but the probability has been lowered from 40% to 30%. Goldman Sachs also lowered its forecast for the U.S. unemployment rate this year from 4.6% to 4.4%.