Goldman Sachs: Fed to Raise Rates Twice Before Concluding Cycle, Inflation Falling Faster Than Expected

Goldman Sachs expects core inflation to decline faster than the committee anticipates, signaling that the current tightening cycle is nearing its end. The ECB is projected to raise rates to 2.75% in December, and the BoE to 4% in November. S&P 500 EPS is forecast to increase by 36% in 2026, before moderating to 11% in 2027. AI-related bond issuance is estimated at $420 billion for 2027. Goldman Sachs holds a bullish outlook on gold and long positions in refined petroleum products for 2027, while noting substantial upside potential for the renminbi.