Goldman Sachs: The Fed may have maintained interest rate constant inflation for the whole of 2026

Matheus Dibo, Director of Investment Strategy for Europe, the Middle East and Africa in Goldman Sachs, stated that the Fed was likely to maintain interest rates constant throughout 2026 and that inflation risk should ease in the second half of the year. “It is clear that the market is still digesting interest-rate expectations, but we do not really agree with that view and believe that the Fed will maintain interest rates for the foreseeable future,” Dibo said in an interview on Wednesday. Dibo stated that the inflation data published earlier this year had been driven by oil prices, the World Cup and tariffs, but there was little indication that inflation would spread in the rest of 2026. Dibo added that, given the trend in the housing market, housing inflation should be eased. (Pembo)