Goldman Sachs and Bank of America have both pushed back their forecasts for Federal Reserve interest rate cuts, citing the latest jobs report. The move signals that the central bank may keep borrowing costs higher for longer — a scenario that could ripple through growth, investment, and risk assets including cryptocurrency.
What the data showed
The two banks adjusted their expectations after the Labor Department released employment figures that surprised to the upside. Strong hiring numbers typically argue against early rate cuts, since the Fed has said it wants to see sustained cooling in the labor market before easing. Neither bank has disclosed a specific new timeline, but the delay alone is enough to reset market assumptions.
Why it hits crypto
Prolonged high interest rates tend to pull capital away from speculative assets. For crypto markets, which have been treading water for much of 2026, the prospect of rates staying elevated into the second half of the year is a headwind. Borrowing costs remain high for leveraged traders, and yield-bearing alternatives like Treasuries keep competing with crypto for institutional dollars. The banks' revised forecasts effectively confirm that the macro backdrop isn't turning friendly anytime soon.
The Fed's next policy meeting is in June. The question now is whether the jobs data marks a blip or the start of a trend. If hiring stays hot, the first rate cut could slip past the third quarter. Goldman and Bank of America's revisions are the first major calls to shift, and other forecasters may follow.
For crypto holders, the wait gets longer. The market will be watching the next employment release and any Fed commentary for clues on how long this cycle lasts.
