Goldman’s Hatzius on Fed Independence, Recession Chances

Jan Hatzius, chief economist at Goldman Sachs, says his firm forecasts “barely positive growth in 2025” for the US with inflation getting back to “the mid-3’s, if not higher.” Hatzius also discusses the “significant impact on financial markets” from President Donald Trump’s threats to fire Federal Reserve Chairman Jerome Powell, his expectations for the Fed to be reactive rather than preemptive on rate cuts, and which parts of the US economy he’s watching closely for signs of deterioration.

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