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New York Post
141 days

Goldman Sachs economists forecast more interest rate cuts this year on fears tied to Trump's tariffs

1. Goldman Sachs predicts three rate cuts by the Fed due to tariff concerns. 2. Trump's tariffs could raise inflation and increase cost pressures on consumers. 3. Forecasts for GDP growth in 2025 lowered to 1% from previous estimates. 4. S&P 500 fell 0.7% amidst uncertainty around tariffs and economic outlook. 5. Core PCE inflation expected to hit 3.5% by late 2025.

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FAQ

Why Bearish?

Increased rate cuts and tariffs signal economic uncertainty, likely harming investor confidence. Historically, similar economic conditions have led to downturns in S&P 500 performance.

How important is it?

Tariff impacts on inflation and growth directly affect S&P 500 constituents, particularly consumer goods and industrial sectors. The fear of reduced consumer spending and investment can undermine stock prices significantly.

Why Short Term?

Immediate reactions to tariff announcements and Fed rate forecasts will influence market sentiment quickly, as investors adjust to new economic signals.

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