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As Trump berates Goldman, other economists agree that higher tariff inflation is coming

1. Goldman Sachs warns of rising inflation due to tariffs. 2. Economists predict inflation could rise 1-1.5%, impacting S&P 500. 3. GDP growth forecast lowered, as tariffs hit consumer spending. 4. Effective tariff rates expected to reach 18%, raising prices. 5. Labor market weakening could delay potential Fed rate cuts.

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FAQ

Why Bearish?

Rising inflation and potential slowing GDP growth may hurt S&P 500. Historical examples show similar conditions have led to market corrections.

How important is it?

The article discusses ongoing economic issues that could negatively affect S&P 500 companies and consumer spending.

Why Short Term?

Immediate inflationary effects from tariffs likely to influence market sentiment in the next few months.

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