Goldman Issues, Drops Recession Call as Trump Upends Outlook

Goldman Sachs Group Inc. economists rescinded their forecast for a US recession after President Donald Trump announced a 90-day pause on most of his previously announced tariffs, though analysts still see policy uncertainty leading to a sharp economic slowdown this year.

“Earlier today, before President Trump’s announcement, we had shifted to a recession baseline in response to the additional country-specific tariffs that went into effect this morning,” the Goldman Sachs team, led by Jan Hatzius, said Wednesday in a note. “We are now reverting to our previous non-recession baseline forecast.”