\n
![](\"https:\/\/crypto.news\/app\/uploads\/2024\/08\/crypto-news-bull-trading-chart-option04.webp\")
<\/p>\n
\n<\/p>\n
Goldman Sachs has reversed its recession forecast after President Donald Trump announced a 90-day pause on most of the administration\u2019s new tariffs, calming markets rattled by trade war fears.<\/p>\n
Earlier Wednesday, Goldman analysts shifted to a recession baseline following the rollout of new country-specific tariffs. But after Trump\u2019s announcement, the firm updated its outlook to a \u201cnon-recession baseline,\u201d projecting modest GDP growth of 0.5% by Q4 2025 and three expected Fed rate cuts starting in June, according to CNBC reporting<\/a>. <\/p>\n Markets responded quickly. Bitcoin surged<\/a> past $82,000, and the Nasdaq approached a 10% gain, recovering from its worst multi-day performance since the 2008 financial crisis. The 10-year Treasury yield eased from 4.5% to 4.4%.<\/p>\n Trump, posting on Truth Social, said multiple countries had initiated talks over trade and currency, prompting the tariff pause and a temporary reduction of the reciprocal tariff rate to 10%. However, tariffs on Chinese imports were raised to 125%, effective immediately.<\/p>\n Goldman now estimates a 45% chance of recession and expects core inflation to peak at 3.5%, according to its latest client note.<\/p>\n The surprise move came after four days of intense market volatility<\/a> and mounting fears of a global recession. Treasury Secretary Scott Bessent will now lead upcoming trade negotiations, a shift Wall Street views positively due to his moderate stance.<\/p>\n <\/p><\/div>\n