Reported 2 days ago
The effects of President Trump's tariffs on the U.S. economy are expected to become evident in economic data with a lag of about three to four months following implementation. Morgan Stanley's chief economist, Seth Carpenter, indicates that inflation rates for tariff-sensitive categories are already rising, predicting notable inflation increases into Q3 2025. Furthermore, he warns that economic growth may face considerable downturns in the fourth quarter as tariffs and immigration restrictions take their toll, making rate cuts from the Fed unlikely this year.
Source: YAHOO