Goldman Sachs Doubles Down on December Rate Cut Prediction as Economic Growth Slows

Wall Street's crystal ball gazers at Goldman Sachs are placing their chips on a December rate cut as economic indicators flash warning signs. The move comes as growth cools across key sectors—because nothing says 'holiday cheer' like monetary policy panic.

Fed watchers note this would mark the first cut since 2023, potentially triggering a domino effect across global markets. Traders are already positioning for what could become the most expensive Christmas present the Fed's ever delivered.

Meanwhile, crypto markets are quietly licking their chops—historically, rate cuts have sent digital assets soaring. But let's be real: when has Goldman ever called a market turn correctly on the first try?

Goldman Sachs Predicts A Dec’ Rate Cut

Per the latest report by Goldman Sachs, a December rate cut is a strong possibility, as markets continue to display weaknesses. The banking giant shared how 2026 may bring in additional rate cuts, starting with a 25-basis-point cut in March and June next year.

The report outlines how labor market data may portray an element of asymmetry, driving a narrative towards a possible December rate cut.

Will the December Rate Cut Help Crypto Markets Boom?

Federal rate cuts have always been reassuring for the cryptocurrency markets. The crypto market at present is in its recovery phase, as the US government shutdown orders seem to be phasing out. Rate cuts in general weaken the US dollar, bolstering investor sentiment towards safe-haven assets such as Bitcoin and gold.

NEXT WEEK'S SCHEDULE IS INSANE

MONDAY → U.S. GOVERNMENT SHUTDOWN ENDS
TUESDAY → FOMC CONFIRMS NEXT RATE CUT
WEDNESDAY → FED PRINTS $1.5 TRILLION
THURSDAY → CPI DATA REPORT
FRIDAY → CRYPTO LEGALIZATION BILL SIGNED

GIGA BULLISH FOR Bitcoin AND CRYPTO! pic.twitter.com/Gxci73V9QE