It's worth repeating: What recession ?

On Monday, Goldman Sachs chief economist Jan Hatzius slashed his expectation for a US recession over the next 12 months to 20% from 25%.

It was just 17 days ago when Hatzius lifted his recession probability to 25% from 15% following a surprisingly weak July jobs report.

The move by Hatzius — and the unwinding of the yen carry trade — sent shudders across markets worldwide.

Now Hatzius says things don't look as dreary for the US economy as once thought.

"The economy is still doing fine," Hatzius said on Yahoo Finance's Catalysts , pointing to improved economic data and a healthy corporate earnings season.

"The lower recession risk has strengthened our forecasts that the Fed will cut by only 25 basis points at the September meeting. That's been our forecast for a long time, but I think with more worries about recession, there was a real possibility that it might be a 50 basis point cut."