Goldman Sachs Chief Economist Jan Hatzius cut his 2025 U.S. GDP growth forecast to 1.7%, pointing to the impact of tariffs on the economy and consumers. At the start of this year, he was predicting 2.4% growth.

Goldman Sachs is the latest economic forecasting team to downgrade its outlook as Trump's tariffs are expected to weigh on growth and boost inflation.

After Goldman Sachs downgraded US growth forecasts and J.P. Morgan’s chief economist Bruce Kasman raised recession risks to 40%, S&P Global has now warned of a prolonged slowdown till 2027, citing weaker economic activity and trade disruptions.

Goldman Sachs on Monday downgraded its 2025 projection for U.S. economic growth to 1.7% from 2.4%, citing its outlook on the Trump administration's trade policy for the cut. Goldman said its trade policy assumptions have “become considerably more adverse,