Subscribe to TheStreet's free daily newsletter 💰💵 JP Morgan, Goldman Sachs, S&P Global, and other major brokerages have increased the probability of a U.S. economic recession this year in light of pending trade wars.

Goldman Sachs economists raised their forecast for Federal Reserve interest rate cuts to three this year and increased the probability of a U.S. recession to 35%, as President Donald Trump’s tariffs put pressure on economic growth.

Goldman Sachs raised the odds of a U.S. recession to 45% from 35%, the second time it has increased its forecast in a week, amid a growing chorus of such predictions by investment banks due to an escalating trade war.