These Are Goldman's Top Rates Traders' Tactical Moves Ahead Of "Lukewarm" Fed Statement

With inflation sticky but not accelerating, the labor market cooling without collapsing, and fiscal stimulus set to support growth in early 2026, policy rates likely need to return to neutral, but not below, according to Seema Shah at Principal Asset Management.

"With a leadership change approaching, the Fed is likely to place slightly more emphasis on the employment side of its dual mandate,” she said.