Economic growth in the United States is said to be slowing down significantly, according to Goldman Sachs, with the Labor Department reporting a drastic 90% reduction in job growth for June.
The US economy in mid-2025 is characterised by steady but slowing growth with rising caution, as evidenced by mixed signals from job creation figures and economic forecasts.
Job creation figures indicate a significant slowdown in hiring. In July 2025, the US added only 73,000 jobs, the weakest monthly gain in over two years, and well below the 2024 monthly average of over 240,000. The unemployment rate has ticked up slightly to about 4.2%, signaling emerging weakness in the labor market that had previously seemed resilient. This slowdown, along with cooling wage growth and increased layoffs or hiring freezes in sectors like tech and retail, raises fears of a potential recession looming despite the still-hot inflation running around 2.6%–2.8%.
In contrast, broader economic indicators show some resilience. Real GDP grew at a strong annualized rate of 3.0% in Q2 2025, rebounding from a 0.5% contraction in Q1, supported by consumer spending and reduced imports. However, other components like investment and exports decreased, and inflation pressures remain with headline CPI projected to tick up to around 3.0%–3.1% later in the year.
Goldman Sachs' outlook reflects concern over the weakening labor market, predicting that the Federal Reserve will likely cut interest rates three times in 2025 due to these economic strains. Their economists note that the deteriorating labor market and declining consumer enthusiasm are risks largely ignored by equity markets, signaling a disconnect between market optimism and economic fundamentals. Despite this, there is uncertainty about the Fed's immediate actions because inflation remains sticky, and trade and immigration policies complicate the economic landscape.
In other news, the mastermind behind a $13,000,000 crypto Ponzi scheme is facing 15 years in prison, and G Coin is taking over the gaming world, powering the shift from Web 2.0 to Web 3.0 with growing daily utility. Margex introduces a new market section for users, ONyc launches on Kamino, unlocking real-world yield and collateral utility in Solana DeFi, and Dreamcash begins the rollout of its trading platform with Hyperliquid integration. Apu is now live for trading on Hyperliquid, and Succinct, the First Decentralized Prover Network, launches on Mainnet.
[1] CNBC, "Goldman Sachs' Jan Hatzius: Jobs data suggest US economy is losing momentum," 31 July 2025. [2] The Wall Street Journal, "Goldman Sachs Sees Three Fed Rate Cuts in 2025," 31 July 2025. [3] Bloomberg, "Fed's Hatzius Sees Inflation Pressures Persisting," 31 July 2025. [4] BBC News, "US inflation: Consumer prices rise at fastest pace in a year," 15 July 2025.
- The US Federal Reserve might cut interest rates three times in 2025, a move motivated by the weakening labor market and economic strains, according to Goldman Sachs' forecast.
- Amidst rising concerns about a potential recession, the slowing job creation figures in the US have indicated a significant slowdown in hiring, with only 73,000 jobs added in July 2025, the weakest monthly gain in over two years.
- In the realm of finance and business, the cryptocurrency market has seen developments such as Margex introducing a new market section, Apu going live for trading on Hyperliquid, and Succinct launching on Mainnet, while G Coin has been dominating the gaming world.
- Amidst the US economy's steady but slowing growth, policy-and-legislation, politics, and general-news headlines continue to be filled with stories such as the punishment of a crypto Ponzi scheme mastermind and emerging Altcoins like Dreamcash.
