- Goldman Sachs retracts the U.S. recession forecast, spurs market concerns.
- Tariff policies cited as significant economic threat.
- S&P 500 faces potential drop due to policy uncertainty.
On April 9, Goldman Sachs released, then withdrew, a recession forecast for the U.S., initially predicting a 65% chance within 12 months.
The forecast withdrawal highlighted volatility concerns, impacting market strategies and drawing attention to policy shifts affecting economic stability.
65% Recession Risk Retracted: Markets on Alert
Economists at Goldman Sachs, led by Jan Hatzius, initially anticipated a 65% chance of a U.S. recession. Citing policy uncertainties, Goldman Sachs swiftly changed this stance.
This adjustment was attributed to tightening financial conditions, consumer boycotts, and policy uncertainties impacting the market outlook. Concerns over tariffs and economic volatility were central to the analysis.
“The policies create considerable turbulence and inflationary outcomes that could exacerbate risk aversion among investors.” – Jamie Dimon, CEO, JP Morgan
Bitcoin Up 6.39%: A Response to Volatility
Did you know? In previous trade tensions, similar stormy forecasts resulted in increased interest in crypto assets like Bitcoin, highlighting their potential as economic hedges.
Bitcoin (BTC) currently trades at $81,981.47 with a market cap of 1.63 trillion. Recent price changes show a 6.39% rise in the last 24 hours, as reported by CoinMarketCap. The data indicates Bitcoin’s flux amid economic shifts.
Additionally, there is considerable speculation surrounding potential crypto investments by notable firms, contributing to further market dynamics.
Source: https://coincu.com/331224-goldman-revises-us-recession-forecast/
