Reported about 17 hours ago
JPMorgan has become the first major Wall Street bank to forecast a recession in the US, projecting that the economy will experience a two-quarter contraction in late 2025, primarily as a consequence of President Trump's tariffs. Chief US economist Michael Feroli estimates that GDP will fall by 1% in Q3 and 0.5% in Q4, resulting in a total decline of 0.3% for the year. This economic downturn is expected to raise the unemployment rate to 5.3%, amidst concerns of stagflation while inflation persists. The Fed may face challenges in adjusting monetary policy as market pressures mount.
Source: YAHOO