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Goldman Sachs has lowered the probability of a U.S. economic recession from 25% to 20%

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Odaily
459Words
Aug 19, 2024

Odaily Planet Daily News: Goldman Sachs has lowered the probability of a U.S. economic recession from 25% to 20%. Earlier this month, due to the surge in the unemployment rate to a three-year high, Goldman Sachs raised the possibility of a U.S. economic recession from 15%. Jan Hatzius, Chief U.S. Economist at Goldman Sachs, stated in the report that the reduction of the economic recession probability from 25% to 20% is mainly due to the lack of signs of an economic downturn in the data released since August 2. If the employment report for August looks "quite good," the probability of a U.S. economic recession will be lowered to 15%. Hatzius insists that the Federal Reserve will cut interest rates by 25 basis points in September, but if the employment report falls below expectations, there is a possibility of a 50 basis point cut.

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