Goldman Sachs now expects the Federal Reserve will make its next interest rate cut in September, and not December as previously thought, as tariffs have less of an inflationary impact than earlier feared.

Goldman Sachs on Monday raised its projection for U.S. interest rates in 2025 to three-quarter-point cuts because of muted tariff effects and labor market weakness.

Citigroup and Wells Fargo also expect the Fed to cut rates by 75 basis points in 2025, while UBS Global Research forecasts 100 basis points of reduction