Goldman Sachs: Trump's Tariff Plans May Lead to Five Extra Fed Rate Hikes, Lower Euro Area GDP

Goldman Sachs has indicated that the tariff proposals by former President Donald Trump could have significant economic implications. According to Goldman Sachs chief economist Jan Hatzius, the proposed tariffs are likely to lower GDP more in the euro area than in the United States. Additionally, the tariffs could lead to five extra Federal Reserve rate hikes, according to BBG. This analysis was presented during a discussion in Sintra, Portugal. However, it is noted that the outcome could be influenced by Fed Chairman Trump.