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. According to a report by economists including Jan Hatzius, the strength of labor demand is still unclear. Although non-farm employment is healthy, the number of initial and continuous unemployment benefit claims has 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 surprisingly hawkish forecast last week, we are confident in our prediction that the central bank will cut interest rates twice (September and December) this year. Fed officials lowered their expectations for interest rate cuts this year to once last week, instead of the previously expected three. Goldman Sachs had bet in May that the Fed would begin cutting interest rates in July.