Silver Rises Over 120% YTD 
In a recent client note, Goldman Sachs’ chief economist Jan Hatzius argues that President Trump’s escalating tariffs are set to weigh heavily on the U.S. economy. After a 0.5% annualized GDP contraction in Q1—despite a modest 0.5% rise in consumer spending—Goldman sees growth slowing to just 1.1% through 2025.
They blame tariff-related price increases for sapping real incomes, pointing out that consumer spending has effectively stalled over the past six months, a pattern typically seen only in recessions. Under their base-case scenario, reciprocal tariffs will push the average effective rate up by 14 percentage points this year and another 3 points in 2026.
As a result, core personal consumption expenditures inflation is forecasted to peak at 3.3% in 2025, before easing toward the Fed’s 2% goal over the following two years.
