Core Viewpoint - Goldman Sachs indicates that the labor market needs to weaken significantly before the Federal Reserve can consider restarting a loosening cycle, and this weakness may take several months to manifest [1] Summary by Relevant Sections - **Federal Reserve Stance** - The Federal Reserve is currently in a wait-and-see mode, awaiting the resolution of uncertainties in the market [1] - There is a high likelihood that interest rates will remain unchanged in the upcoming meeting [1] - **Labor Market Insights** - Recent employment data supports the Federal Reserve's cautious approach [1] - Any signs of weakness in the labor market may take months to become apparent [1]

Group 1: Federal Reserve Rate Cut Expectations - The Federal Reserve is expected to implement a quarter-point rate cut this week and at each of the next three meetings before the end of the year [1] - The long-running interest rate pause has had significant impacts on deposits, credit, and debt [1] Group 2: Impact on Deposit Accounts - Checking accounts have an average interest rate of 0.07%, which may decrease further [3] - Savings accounts have slightly improved to an average of 0.40%, while high-yield savings accounts are around 4% [4] - Money market accounts average 0.59%, but high-yield options are near or above 4% [5] Group 3: Mortgage and Personal Loan Rates - Mortgage rates have decreased since May but are unlikely to fall significantly due to bond market influences, with predictions to remain above 6% through 2026 [7][8] - Personal loan rates have been around 12%, with advertised rates ranging from high 6% to over 9% [9] Group 4: Credit Card Interest Rates - Credit card interest rates have increased from around 15% in 2021 to over 21% in 2025 [11] - Potential rate cuts by the Fed may lower the cost of credit cards, but companies are currently maintaining high rates [12] Group 5: Investment Climate - Stock prices are influenced by the Fed's rate actions, but broader economic and corporate profit trends also play a significant role [13] - Companies are advised to focus on high-quality stocks for long-term growth amidst changing interest rates [14]