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Goldman stands by call that consumers will bear the brunt of tariffs after Trump blasts bank's economist

1. Goldman Sachs forecasts tariffs will impact consumer wallets significantly. 2. Consumers may bear two-thirds of the costs from recent tariffs. 3. Core PCE inflation expected to rise to 3.2% by year-end. 4. Markets are pricing in Fed interest rate cuts this year. 5. Economic conditions and inflation are closely tied, affecting S&P 500.

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FAQ

Why Bearish?

Rising costs due to tariffs can lower consumer spending, impacting corporate earnings negatively, similar to past market downturns after tariff escalations.

How important is it?

Rising inflation and costs directly affect consumer spending and corporate pricing power, crucial for S&P 500 companies.

Why Short Term?

The near-term impact of rising costs on consumers is likely to be felt quickly, influencing market sentiment and corporate performance in subsequent quarters.

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