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.
