Financial giant Goldman Sachs has lowered the U.S. economic forecast to 1.7 percent for 2025 due to adverse trade policies, according to its report released on Monday.
In a research note, Goldman Sachs chief economist Jan Hatzius revised his 2025 GDP forecast for the United States downward from the previous 2.4 percent.
"The reason for the downgrade is that our trade policy assumptions have become considerably more adverse," Hatzius wrote.
Hatzius also raise his projection for the Fed's preferred inflation gauge to end the year at 3 percent -- up from prior estimates in the mid-2 percent range.
These updated forecasts mark the first time in roughly two and a half years that U.S. GDP growth is expected to fall below consensus data, which currently anticipates above 2 percent growth.
Goldman Sachs slashes U.S. 2025 GDP forecast over adverse trade policies
Goldman Sachs slashes U.S. 2025 GDP forecast over adverse trade policies
