According to Odaily, concerns surrounding President Donald Trump’s trade policies have prompted Goldman Sachs to significantly lower its U.S. economic growth forecast. The investment bank has adjusted its prediction for this year’s U.S. economic growth to 1.7%, a notable decrease from the previous 2.4% estimate. This revision mirrors the escalating unease on Wall Street regarding the Trump administration’s tactics, particularly following Trump’s failure to dismiss the possibility of an economic recession.
## U.S. Economy Faces 20% Risk of Recession
On Monday, U.S. stock markets witnessed a sharp downturn, with the Nasdaq plummeting by 3.9% and the S&P 500 sliding by 1.5%. Goldman Sachs has also highlighted a 20% chance of a recession looming over the U.S. economy. Economists are of the opinion that if the economic peril becomes more palpable, Trump might soften his stance on tariffs.
### 📉 Why the Concerns Over U.S. Economic Growth?
The apprehension stems from the uncertainty surrounding Trump’s trade policies and the potential repercussions on the U.S. economy. The looming threat of a recession has rattled investors, leading to a sell-off in the stock market.
### ⚡ What’s Next for the U.S. Economy?
As the U.S. faces the risk of economic downturn, policymakers will be closely monitoring key economic indicators for signs of further instability. How the Trump administration navigates the trade war concerns will significantly impact the economic outlook.
### 🤔 How Will Investors React?
Investors are advised to exercise caution and diversify their portfolios amidst the uncertain economic landscape. The market volatility calls for a strategic approach to mitigate potential risks and capitalize on emerging opportunities.
Will the U.S. economy weather the storm, or are darker days ahead? Share your thoughts below!
#U.S. economic outlook, #Goldman Sachs forecast, #trade war impact