Goldman Sachs Predicts The Fed Will Cut Interest Rates 3 Times, What Is The Impact?

Goldman Sachs predicts that the Federal Reserve (The Fed) will cut the benchmark interest rate by 3 times this year. Not only that, two additional cuts are also projected to occur in 2026.
If true, then the interest rate could drop to a range of 3-3.25%. This figure is lower than the current level, which is in the range of 4.25-4.50%.
The estimate emerged after US inflation data showed a limited increase in July, which was only 0.2% compared to the previous month.
The US interest rate futures market is now predicting a 93% chance of a 25 basis point rate cut next month. In fact, there is a 7% chance of a 50 basis point cut, up from 3% the previous day.
U.S. Treasury Secretary Scott Bessent believes that a half-point cut is quite possible. He argues that the current interest rates are too restrictive, so they should be lowered by about 150 to 175 basis points.
For the crypto market, this policy has the potential to trigger new liquidity flows. As happened in 2020, when interest rates were cut close to zero, the price of Bitcoin soared to US$60,000 within a year.