According to Wu, ahead of next week's Jackson Hole Global Central Bank Annual Meeting, Goldman Sachs predicts that the Federal Reserve will cut interest rates by 25 basis points in the next three meetings in September, November and December.

Then there will be one cut each quarter next year and another cut in 2026. Ultimately, the Fed’s policy rate, the federal funds rate, should be about 200 basis points below its level of the past 13 months, at 5.375%.

Goldman Sachs' U.S. economists still do not expect a recession in the near future.