Goldman Sachs has raised the likelihood of an economic recession in the U.S. next year from the previous 15% to 25%

ChainCatcher news, according to Bitcoin.com, global investment bank Goldman Sachs has raised the likelihood of an economic recession in the U.S. next year from the previous 15% to 25%, although they maintain that the risks remain limited.

Led by Jan Hatzius, Goldman Sachs economists believe that the overall economic outlook is stable, there are no severe financial imbalances, and the Federal Reserve has the capacity to quickly cut interest rates if necessary. Goldman Sachs' forecast indicates that the Federal Reserve will consecutively cut rates by 25 basis points in September, November, and December, while JPMorgan and Citigroup predict a more aggressive 50 basis point cut in September. They believe that a 50 basis point cut is unlikely unless job growth in August is as weak as in July.

Additionally, Goldman Sachs expects that the labor market will not deteriorate rapidly due to strong job demand and the absence of significant economic shocks.