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. JP Morgan and other major investment banks have also increased their recession risk predictions. As a result, Goldman Sachs is now forecasting that the Federal Reserve could start cutting interest rates as early as June. This development comes amidst growing uncertainty surrounding trade tensions and their potential to negatively affect economic growth. The heightened recession risk has led to a cautious outlook among investors and policymakers alike. The potential rate cuts by the Federal Reserve could be seen as a preemptive measure to safeguard against a possible economic downturn. The situation is being closely monitored by market analysts and economists for any further escalation in trade disputes and its ramifications on the financial markets.