Core Viewpoint - Goldman Sachs anticipates that the Federal Reserve will lower interest rates in September, three months earlier than previously predicted, due to signs of milder inflation related to tariffs and counter-inflationary forces such as slowing wage growth and weakened demand [1] Summary by Relevant Categories Interest Rate Predictions - Goldman Sachs estimates that the probability of a rate cut in September is "slightly above" 50% [1] - The firm expects rate cuts of 25 basis points in September, October, and December, with two additional cuts anticipated in early 2026 [1] Terminal Rate Expectations - Goldman Sachs has revised its terminal rate forecast down from 3.5%-3.75% to 3%-3.25% [1]

Core Viewpoint - The European Central Bank (ECB) is no longer considering pausing interest rate cuts, as indicated by Carsten Brzeski from ING [1] Group 1: Economic Concerns - U.S. tariffs on European goods and broader protectionist policies under Trump's administration have reignited concerns about economic growth in the Eurozone [1] - The current trade tensions are expected to exert deflationary pressures on the Eurozone due to a stronger euro and falling energy prices [1] Group 2: Investment Outlook - Investment plans in defense and infrastructure appear to provide a more optimistic outlook for the Eurozone economy [1] - Despite the potential for a pause in rate cuts, the ECB is likely to continue with rate reductions in the upcoming meeting [1]