The Latest Breaking News from David Mericle

The January Fed meeting marked the first central bank gathering of 2026, with Fed Chair Powell & Co. voting to keep interest rates unchanged.

“A lack of recovery in the jobs market and a slower U.S. economy are key risks to watch for in 2026.”

Fed Chair Jerome Powell firmly pushed back against market expectations for a December rate cut on Wednesday, cautioning that it's more prudent to slow down when visibility is low—yet his remarks only modestly dented investor optimism, with traders still essentially betting on another move by the end of the year.

“History also suggests that the full consequences of AI for the labor market might not become apparent until a recession hits.”

The Federal Reserve may have delivered its first rate cut in nine months on Wednesday — but according to Goldman Sachs, it likely won't be the last.

“Hopefully things will be okay, but you do see that kind of weakening,” he said.

“We stand by the results of this study,” Goldman economist David Mericle told CNBC’s Squawk on the Street on Wednesday.

Powell put a cat among the pigeons by suggesting he was minded to "look through" tariff-induced inflation by not increasing interest rates.

Goldman Sachs is doubling down on its dovish rate path forecast, saying the Federal Reserve is poised to deliver five interest rate cuts through the end of next year—three in 2025 and two more in 2026—a significantly more aggressive easing cycle than markets are currently pricing in.