Goldman Sachs has raised the probability of a US recession to 45% citing concerns over President Trump’s proposed tariffs and their impact on the global economy. Other major investment banks like JP Morgan have also revised their recession risk predictions. As a result, Goldman Sachs is now expecting the Federal Reserve to start reducing interest rates in June. The move comes as a response to the potential disruption caused by the tariffs and their implications for the economy. This shift in outlook reflects growing apprehensions among financial institutions about the future economic landscape. The heightened recession risk has led to a reevaluation of monetary policies and strategies to mitigate the impact of these uncertainties. With prominent players in the financial sector adjusting their forecasts, the market is bracing for potential changes ahead. The implications of these developments are being closely monitored not only in the US but also globally, as the interconnected nature of economies makes the situation a matter of international concern. The focus is now on how policymakers will navigate these challenges and what measures will be taken to safeguard against a possible downturn.