The new forecast sees the Fed lowering rates in July, September and November – an increase from earlier bets on two cuts this year and one in 2026, according to a team of Goldman economists.

The U.S. economy faces a sharply higher risk of recession over the next twelve months, Goldman Sachs analysts warned this weekend, as tariffs reduce growth, stoke inflation pressures and deepen the market's first quarter decline.

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%.