Goldman Sachs slashes U.S. economic growth projection to 1.7% in 2025

And as stocks plummet, major investment bank Goldman Sachs slashed its economic growth forecast for the U.S.

On Monday, CNBC reported that the firm adjusted its 2-point-4 percent growth forecast for gross domestic product to 1-point-7 percent.

Goldman's chief economist said the reason behind this significant downgrade was fears that the new administration's tariff policies would prompt "economic weakness", as the outlook regarding tariffs becomes more "adverse."

Recent figures have seen economic growth slowing in the U.S. with the economy expanding at 2-point-3 percent in the fourth quarter of last year, compared to a 3-point-1 percent growth in the previous quarter.