Key Takeaways:
- Goldman Sachs predicts a December 25-basis-point Fed rate cut, with further cuts in March and June 2026.
- Soft labor market data and economic uncertainty are driving expectations for easing.
- Rate cuts typically weaken the USD and may boost cryptocurrencies and safe-haven assets like gold.
- Crypto markets could benefit from improved investor sentiment and inflows.
Goldman Sachs Signals a December Rate Cut
Goldman Sachs has signaled a potential Federal Reserve rate cut this December as US economic indicators reveal ongoing weakness. The banking giant’s latest report predicts that the Fed may ease rates to counter cooling growth, with additional cuts expected in 2026.
“While the press conference played out somewhat differently than we expected, we continue to see a December cut as quite likely,” said David Mericle, chief US economist at Goldman Sachs. The report suggests a 25-basis-point cut in December, followed by two more in March and June 2026, potentially bringing the terminal rate to 3–3.25%.
Economic Weakness Drives Fed’s Potential Move
Key US labor market data are fueling expectations of a rate cut. Goldman Sachs notes that upcoming payroll reports may reveal softer employment trends, partly due to deferred resignations from government employees. This labor market “asymmetry” could pressure the Fed to act, signaling that economic growth remains fragile.
Also Read: How 5 US Economic Indicators This Week Could Impact Bitcoin Price
Market signals also support this forecast. Fed swaps now indicate little chance of further interest rate hikes, reflecting investor anticipation of easing monetary policy.
Implications for Financial and Crypto Markets
A Fed rate cut traditionally boosts risk assets, including equities and cryptocurrencies. Weakening the US dollar tends to increase appeal for safe-haven assets such as Bitcoin and gold. With the cryptocurrency market in recovery mode after recent US government shutdown disruptions, a December cut could strengthen investor sentiment and market momentum.
Also Read: Crypto Market on Fire: Smart Money Moves Before the Next Correction
Analysts suggest that the expected easing could create a favorable environment for crypto markets, encouraging renewed inflows from both retail and institutional investors.
Conclusion
As economic growth shows signs of cooling, Goldman Sachs’ forecast underscores the Fed’s likely shift toward easing. Investors in equities, crypto, and precious metals should prepare for a volatile yet potentially rewarding end to 2025. A December rate cut may not just stabilize markets—it could spark fresh momentum for risk assets, particularly Bitcoin and gold.
