TechFlow news, March 10 — According to Jinshi News, Morgan Stanley has revised down its U.S. GDP growth forecasts due to the negative impact of tariffs and rising inflation caused by a tight labor market. The forecast for 2025 GDP growth has been lowered from 1.9% to 1.5%, and for 2026 from 1.3% to 1.2%. Morgan Stanley now expects the Federal Reserve to cut interest rates by only 25 basis points in June 2025, followed by two additional rate cuts starting in 2026, later than market expectations.
Meanwhile, Goldman Sachs has reduced its U.S. GDP growth forecast for 2025 from 2.2% to 1.7% and raised the probability of a U.S. recession from 15% to 20%.




