China Holds Loan Prime Rates Steady in January as Market Expectations Align 
RBA Deputy Governor Says November Inflation Slowdown Helpful but Still Above Target 
U.S. Urges Japan on Monetary Policy as Yen Volatility Raises Market Concerns 
Bank of Canada Holds Interest Rate at 2.25% Amid Trade and Global Uncertainty 
New York Fed President John Williams Signals Rate Hold as Economy Seen Strong in 2026 
Federal Reserve Faces Subpoena Delay Amid Investigation Into Chair Jerome Powell 
Markets React as Tensions Rise Between White House and Federal Reserve Over Interest Rate Pressure 
U.S. Prosecutors Investigate Fed Chair Jerome Powell Over Headquarters Renovation 
Japan Declines Comment on BOJ’s Absence From Global Support Statement for Fed Chair Powell. Source: Asturio Cantabrio, CC BY-SA 4.0, via Wikimedia Commons 
Bank of Korea Expected to Hold Interest Rates as Weak Won Limits Policy Easing 
MAS Holds Monetary Policy Steady as Strong Growth Raises Inflation Risks 
ECB’s Cipollone Backs Digital Euro as Europe Pushes for Payment System Independence 
Goldman Sachs projects the Federal Reserve will start monetary easing with three 25-basis-point interest rate reductions at the September, October and December 2025 meetings, a more aggressive prognosis than its previous single-cut estimate. With futures markets giving an 85–92% chance of a September move, this change mirrors softening labor market indicators and moderating inflation. Should forthcoming employment data reveal a more rapid increase in joblessness, Goldman Sachs says the Fed could even choose to reduce rates by 50 basis points in September.
This updated prediction fits peers like Wells Fargo and Citigroup, all of which have raised expectations for policy easing to start in September. Key causes of this dovish turn mentioned everywhere are lower job creation, increasing unemployment, and limited price pressures. Fed officials' recent remarks have also swung more toward caution, strengthening rate relief expectations.
Though Goldman Sachs warns that the Fed's final path will depend on approaching data—particularly employment and inflation statistics—many agree on impending cuts. A more ambitious easing cycle might be on the table should the economy deteriorate faster than expected; on the other hand, more robust data might put planned reductions on hold or postpone them.
