Goldman Sachs has raised its estimate for the likelihood of a U.S. recession in the next 12 months to 35%, up from 20%. The company - not surprisingly - cites risks from escalating trade tensions and weakening consumer and business confidence. They also add that "statements from White House officials indicating greater willingness to tolerate near-term economic weakness in pursuit of their policies", is a contributing factor
The firm lowered its 2025 GDP growth forecast to 1% and now expects three interest rate cuts this year—in July, September, and November.
It revised its year-end inflation forecast higher to 3.5%, based on the Fed’s preferred PCE index, and sees the unemployment rate rising to 4.5% by year-end.
Other major institutions share similar concerns, with JPMorgan assigning a 40% recession probability and Moody's Analytics' Mark Zandi warning of a two-in-five chance, pointing to soft consumer spending and persistently high inflation.
This article was written by Greg Michalowski at www.forexlive.com. Read More Details
Finally We wish PressBee provided you with enough information of ( Goldman Sachs raises U.S. recession risk to 35% amid trade tensions and weak confidence )
Also on site :
- Watch Jason 'Jelly Roll' DeFord Make His Acting Debut With New Single on 'Fire Country' (Exclusive)
- Easy Ice Finishes Q1 2025 With Two More Acquisitions
- Carrie Underwood's 'Dark Side' Scares Luke Bryan