Goldman Sachs economists formally withdrew their forecast for any Federal Reserve rate cut in 2026, citing a stronger-than-expected labor market as the primary driver. The call shift is notable given Goldman had previously penciled in at least one cut; its removal places the firm among the more hawkish consensus voices on the Street heading into summer.
For Armada's traditional repo desk, a sustained higher SOFR environment directly affects the cost of overnight and term financing for hedge fund and asset manager counterparties. Spread compression becomes a real margin risk, and any floating-rate assumptions baked into 2026 client pricing models need to be revisited immediately.