Goldman Sachs has raised its forecast for a U.S. recession next year to 25% from 15% previously.

As reported by Bitcoin.com, global investment bank Goldman Sachs has raised the possibility of a US economic recession next year from the previous 15% to 25%, although they still believe the risk is limited.Goldman Sachs economists, led by Jan Hatzius, believe that the overall economic outlook is stable, there is no severe financial imbalance, and the Federal Reserve has the ability to quickly cut interest rates when necessary. Goldman Sachs' forecast shows that the Federal Reserve will cut interest rates by 25 basis points in September, November, and December, while JPMorgan Chase 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.In addition, Goldman Sachs expects that the labor market will not deteriorate rapidly due to strong job demand and no major economic shocks.