Goldman Sachs Research previews tomorrow's June FOMC meeting.

"The FOMC is widely expected to drop its forward guidance suggesting cuts at its June meeting. We expect the FOMC to remove the phrase “the extent and timing of additional” in reference to adjustments to the funds rate, though it could also simplify its statement further. We expect the median dot to show no change to the funds rate in 2026, with three participants showing a hike, followed by one cut in 2027 and one more in 2028.  We assume that Warsh will not submit dots," GS notes.

"In the 2026 economic projections, we expect lower GDP growth (-0.2pp to 2.2%) and unemployment (-0.1pp to 4.3%) and higher headline (+1.2pp to 3.9%) and core inflation (+0.6pp to 3.3%).  We expect the 2027 inflation projection to rise 0.1pp to 2.3%, implying little effect of the oil shock beyond this year. We continue to see rate hikes as unlikely but do not expect further cuts until well into 2027," GS adds,