The U.S. economy is headed into a period of noticeably slower growth thanks to the tariff impact on inflation and, by consequence, consumer spending, according to Goldman Sachs.
- Expect gross domestic product to rise at just a 1.1% annual pace through 2025
The call for lowered growth comes at an uncertain juncture for the economy, with hiring slowing but still positive, consumer sentiment on the rebound from earlier lows and inflation relatively in check though still above the Federal Reserve’s 2% goal.
However, the biggest wild card is President Donald Trump’s tariffs, with Goldman gaming out multiple scenarios depending on how negotiations progress.
The title suggests that Goldman Sachs is worried but quite easily we can see they aren't. Instead they are confused, confused so much so that calling tarrifs a "wild card" for a rebound, and expecting many cuts in the fed rates!!