There will be modest slowing in US, this slow growth of the US stock market is directly or indirectly helping the European and Japanese stock market to gain their investors not an outright recession but slowdown in home building which isnât part of the US. Where US economy is strongly connected with other economies around the world. Minor changes in any sector of the US society may lead to greater effect in other country's society. Goldman Sachs Group Inc. forecasts that growth in the U.S., the world's biggest economy, will slow to 2.3 % next year from 3.4 % in 2006. Expansion worldwide will decelerate to 3.8 % in 2007 from 4.6 % this year. Growth in the U.S. slackens off to a 2.6 % annual rate in the second quarter from 5.6 % in the first quarter. Domestic demand is on a solid footing in Europe, Japan are key emerging markets,'' said Jens Nordvig, a senior global markets economist at Goldman And the underlying stock driving the U.S. slowdown isn't global in nature, but is linked to a slowing U.S. housing market. Japan, the world's second-biggest economy, has the greatest likelihood of surviving a U.S. slowdown, said Howard Schwab, a manager at Driehaus Capital Management in Chicago. Middle East petrodollars also will help insulate Europe from a U.S. slowdown. The firm also is staying away from stock markets that will suffer the most from slowing growth, he said. Where Bank of America Capital Management's Joseph Quinlan doesn't buy the argument that European stocks will hold up in a U.S. slowdown. European and Japanese companies are more in danger to a deceleration in the U.S. than commonly realized. Goldman also predicts that the Federal Reserve will respond to the U.S. slowdown by lowering interest rates next year, while European rates rise. The U.S. central bank will reduce a federal fund that is the rate banks charge one another for overnight loans, by 1.25 %. The rate is currently 5.25%.