Goldman Sachs economists still believe that the Fed will cut interest rates twice this year. In addition, the US labor market is at a turning point. Jan Hatzius and other economists wrote in a report to clients that the intensity of labor demand is still unclear, although non-farm employment is healthy, the number of initial claims for unemployment benefits and the number of continuing unemployed have both risen in recent weeks. Hatzius wrote that the main driving force behind labor demand is economic activity, and GDP growth has slowed significantly. So despite the Fed's surprising hawkish forecast last week, we have confidence in our prediction that the central bank will cut interest rates twice this year (in September and December). Fed officials lowered their expectations for interest rate cuts this year to once last week, instead of the previous forecast of three times. Goldman Sachs recently bet in May that the Fed would begin cutting interest rates in July.