Probability of U.S. Economic Recession Rises to 45%

2025-04-13 06:52:00

The likelihood of a U.S. economic recession has increased to 45%, according to recent analyses by Goldman Sachs and other financial institutions.

This rise in probability reflects growing concerns over tightening financial conditions, heightened policy uncertainty, and reduced capital spending.

The escalation in recession risk comes amidst global economic challenges, including trade tensions and fluctuating oil prices. Analysts have pointed to the impact of recent tariff policies and geopolitical instability as contributing factors to the economic slowdown.

Additionally, forecasts for U.S. GDP growth have been revised downward, with expectations of minimal growth in the coming quarters.

The Federal Reserve is anticipated to respond with interest rate cuts to mitigate the effects of the slowdown. However, the situation remains dynamic, with economists closely monitoring developments and their potential implications for both domestic and global markets.