Goldman Sachs have cut its US GDP forecast again – sees rising chance of Fed rate cut

Goldman Sachs lowers US Q2 GDP projection to 1.1%

• from 1.3%

GS cite the damage from the expanding scope of the US trade war

On the Federal Reserve, GS says it sees rising chance of a rate cut

• but so far not enough to pencil cuts into its baseline forecast

More:

• risks stemming from trade conflicts with Mexico and China
• "With the scale and scope of the trade war increasing further over the last week, we revised our inflation and growth forecasts, and adjusted our Fed probabilities"
• "Because of the downside risks to growth, we have sharply raised our subjective probabilities for Fed rate cuts. But while it is a close call, the outlook has not yet changed enough for cuts to become our baseline forecast."