Goldman Sachs expects Trump’s upcoming tariff announcement to raise core inflation to 3.5% in 2025, according to CNBC. The firm also projects that economic growth will slow to just 1%, down from 1.5%. Goldman Sachs sees unemployment rising to 4.5% and recession odds climbing to 35%. Goldman warns of a rising risk of stagflation, a mix of low growth and high inflation last seen in the U.S. in nearly five decades. The firm now expects the Fed to make three quarter-point rate cuts in 2025, up from its previous forecast of two cuts.
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00:00It's Benzinga bringing Wall Street to Main Street.
00:02Goldman Sachs expects Trump's upcoming tariff announcement to raise core inflation to 3.5%
00:06in 2025, according to CNBC.
00:09Goldman also rejects that economic growth will slow to this 1% down from 1.5%.
00:14They see unemployment rising to 4.5% and recession odds climbing to 35%.
00:18Goldman also warns of a risk of rising stagflation,
00:21risk of low growth and high inflation, lasting in the U.S. nearly five decades ago.
00:25Trump now expects the Fed to make three quarter-point rate cuts in 2025,
00:29up from its previous forecast of two cuts.
00:32For all things money, visit Benzinga.com slash GSTV.