Wall Street is downgrading US economic forecasts, citing inflation and rising
unemployment, with recession odds increasing to 30% due to surging oil prices
from the Iran war. Goldman Sachs predicts jobless rates will rise to 4.6% by
2026, while inflation may reach 3%. Economists like Nancy Vanden Houten of
Oxford Economics note that the war’s impact is visible quickly, especially in
gas prices. Meanwhile, Morgan Stanley revised its consumer spending forecast
down to 1.7% growth.
