Investing.com -- Goldman Sachs has reducedits 12-month US recession probability by 5 percentage points to 25%, while
maintaining expectations for below-trend growth and a rising unemployment rate.
The investment bank now anticipates theFederal Reserve will deliver two 25 basis point rate cuts in December 2026 and
March 2027, a three-month delay from its previous forecast. The adjustment
reflects lower recession risk and higher near-term core PCE inflation.
Goldman Sachs continues to expect theEuropean Central Bank to implement two 25 basis point rate hikes in June and
September 2026, followed by reversals in early 2027.
On China, Goldman Sachs noted the economycontinues to grow at a solid pace, though the imbalance between strong goods
production and weak domestic demand remains severe.
This article was generated with the supportof AI and reviewed by an editor. For more information see our T&C.