Goldman Sachs has revised its forecast, now estimating a 45% chance of a U.S. recession within the next 12 months. This marks a significant increase from their previous prediction of 35%, made just a week prior. Initially, Goldman Sachs assessed the recession probability at just 20%, reflecting the rapidly shifting economic landscape. Several factors contribute to this increased concern, including persistent inflation, aggressive interest rate hikes by the Federal Reserve aimed at curbing price increases, and potential slowdown in consumer spending. The rising cost of borrowing and tighter credit conditions are expected to further dampen economic activity, increasing the risk of a contraction. Investors and businesses are closely watching economic indicators for further signs of a potential downturn. ```