Morgan Stanley and Goldman Sachs Downgrade U.S. Economic Growth Outlook

BlockBeats News, March 10th, J.P. Morgan predicted that due to the negative impact of tariffs and tight labor market leading to rising inflation, the growth rate of the U.S. Gross Domestic Product (GDP) will decline. The GDP growth forecast for 2025 has been revised down from 1.9% to 1.5%, and for 2026 from 1.3% to 1.2%. J.P. Morgan expects the Fed to only cut interest rates by 25 basis points in June 2025 and anticipates two more cuts starting in 2026, later than market expectations.

Goldman Sachs, on the other hand, lowered its U.S. GDP growth forecast for 2025 from 2.2% to 1.7% and increased the probability of a U.S. economic recession from 15% to 20%. (FXStreet)