BusinessEconomyEmployment

Goldman Sachs Warns of Labor Market Weakness Undermining Upbeat GDP Forecasts

Despite bullish GDP estimates showing steady economic growth, Goldman Sachs economists warn that employment indicators have deteriorated to their worst non-recession levels in 50 years. The analysis suggests business frontloading due to tariff concerns may be distorting growth figures while underlying labor conditions continue weakening.

Economic Optimism Meets Labor Market Reality

Recent bullish GDP estimates pointing to sustained American economic growth may be presenting an overly optimistic picture, according to analysis from Goldman Sachs. Sources indicate that while official growth projections have strengthened during the government shutdown, underlying employment data suggests significant weakness that could ultimately drag down the economic outlook.

EconomyMarkets

Dollar Slips on Fed Outlook While Gold Hits Peak Amid Trade Tensions

The U.S. dollar declined as the Federal Reserve’s latest economic report fueled expectations of interest rate cuts. Gold prices reached a historic high, while simmering trade tensions between the U.S. and China added pressure to global markets.

Market Reactions to Federal Reserve Signals

U.S. stock futures were mixed in recent trading sessions, according to market analysis, as the Federal Reserve signaled potential monetary easing. The dollar reportedly dropped following the release of the Fed’s Beige Book, which sources indicate pointed to slowing momentum in the U.S. economy. Analysts suggest that the report reinforces expectations of a 25-basis-point interest rate cut later this month, with some forecasting an additional reduction in December.