Goldman Sachs does not expect the Fed to cut rates this year

Goldman Sachs believes the Fed won't cut interest rates this year. "I think we are in a more sustainable inflation environment," the bank's stance was explained by its chief executive David Solomon on Wednesday.

Traders have reduced bets that the regulator will make more than one cut this year, helped by the latest minutes of its meeting. However, markets still expect at least one downgrade. Solomon's comments run counter to this stance.

As Solomon stated, while he believes the United States economy is generally quite robust, it is noticeable that the average citizen of the country is cutting back on their spending under the influence of rising prices.

The Goldman CEO also expects interest rates in Europe to fall this year as economic growth in the region, he said, is more sluggish than expected. In addition, he expressed concern about a number of headwinds to global growth, ranging from inflationary pressures to geopolitical issues.