Morgan Stanley and Goldman Sachs lower U.S. economic growth forecasts

ChainCatcher news, according to Jinshi reports, Morgan Stanley predicts that due to the negative impact of tariffs and a tight labor market leading to rising inflation rates, the growth rate of the U.S. Gross Domestic Product (GDP) will decline. The GDP growth forecast for 2025 has been revised down from 1.9% to 1.5%, and for 2026 from 1.3% to 1.2%.

Morgan Stanley expects the Federal Reserve to only cut interest rates by 25 basis points in June 2025, with two more rate cuts anticipated starting in 2026, later than market expectations. Goldman Sachs has also lowered its U.S. GDP growth forecast for 2025 from 2.2% to 1.7% and raised the probability of a U.S. economic recession from 15% to 20%.