Goldman Sachs: The Fed is likely to hold rates steady in January, but will cut rates twice more in the remainder of 2026.

Lindsay Rosenner, Head of Multi-Sector Fixed Income at Goldman Sachs Asset Management, commented on the US non-farm payrolls: Goodbye, January! The Fed is likely to maintain the status quo for now, as the labor market has shown initial signs of stabilization. The improvement in the unemployment rate suggests that the sharp rise in November was due to individual employees leaving early due to the "deferred departure" policy and data distortion, rather than a sign of systemic weakness. We expect the Fed to maintain its policy stance for now, but anticipate two more rate cuts in the remainder of 2026. (Jinshi)