Recession 2025 in US: After J.P. Morgan, other investment banks, now Goldman Sachs raises odds

Goldman Sachs has raised the odds of a U.S. recession to 45 per cent in the next 12 months, joining other investment banks in revising their forecast as fears of a trade war grip markets after sweeping tariffs from U.S. President Donald Trump, as per a report.

Goldman raised the probably of a recession in the next 12 months from a previous estimate of 35 per cent following a sharp tightening in financial conditions and a rise in policy uncertainty that is likely to depress capital spending by more than what Goldman had previously assumed, Reuters reported.

Several investment banks raised their recession risk forecasts last week, with J.P. Morgan putting the odds of a U.S. and global recession at 60 per cent.


Goldman had raised the probability of a U.S. recession to 35 per cent from 20 per cent just last month, noting economic fundamentals were not as strong as in the previous years.

Major stock indexes plunged as U.S. President Donald Trump showed no sign of backing away from his sweeping tariff plans, and Wall Street banks sounded the alarm on high recession probabilities. Asian share markets and U.S. stock futures tumbled on Monday as fears of a global trade war led investors to ramp up bets on the risk of recession and a U.S. rate cut as early as May.

FAQs

Q1. Who is President of USA?
A1. Donald Trump is the President of the USA.

Q2. What are odds about recession in the US?
A2. Several investment banks raised their recession risk forecasts last week, with J.P. Morgan putting the odds of a U.S. and global recession at 60 per cent. Goldman had raised the probability of a U.S. recession to 35 per cent from 20 per cent just last month.