Rising trade tensions with China, and now Mexico, have caused Goldman Sachs to downgrade US’s Q2 economic growth forecasts. The US GDP is expected to grow by 1.1% in Q2 2019 according to their revised estimates, down from 1.3% previously forecast.

Analysts at the leading investment bank have also increased the probability of a rate cut by Fed. Rising downside risks that could affect economic growth and inflation have created a higher likelihood for a cut in interest rates.