Goldman Sachs has changed its prediction of a recession, reversing its previous outlook after President Trump announced a 90-day hold on most new tariffs. The move calmed markets that had been rattled by trade war concerns. Earlier Wednesday, the firm shifted to a recession baseline due to new tariffs, but after Trump’s announcement, they updated their projection to a ‘non-recession baseline’. Goldman now expects modest GDP growth of 0.5% by Q4 2025 and predicts three Fed rate cuts beginning in June. This shift was reflected in market movements: Bitcoin surged past $82,000, while the Nasdaq experienced gains approaching 10%, recovering from its worst multi-day performance since the 2008 financial crisis. Treasury yields also eased slightly.