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Goldman Sachs has backed away from predicting that the US economy would enter a recession.
The investment banking giant had predicted there was a 65% chance the US economy would shrink this year.
The banking giant has now reverted to a previous forecast, which said the risk of a recession was 45%.
According to the BBC, in an internal research note, Goldman notes that "prior to President Trump's announcement, we had moved to a recessionary baseline in response to the additional country-specific tariffs that went into effect this morning. We are now reverting to our previous baseline forecast."
Fellow investment bank JPMorgan said it would "reconsider" its forecast over the coming days, saying the risk of a US recession was now a "closer call" after Trump announced a 90-day pause in higher tariffs for most countries.
Earlier this week she raised her forecast to 60%.
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