JP Morgan predicts 2025 recession risk to 60% as Trump tariffs disrupt market
The risk of the global economy falling into a recession has increased from 40% to 60%, J.P. Morgan's chief U.S. economist warned.
Anonymous
JP Morgan predicts 2025 recession risk to 60% as Trump tariffs disrupt market
Michael Feroli, J.P. Morgan's chief U.S. economist, said in a Friday evening note to investors that the company forecasts that gross domestic product (GDP) will likely contract “under the weight of the tariffs.” In other words, Trump's tariff plan will have drastic economic effects. However, it's important to know that the Trumps' tariffs are not only affecting the global economy; the restrictive trade policy also threatens to harm the supply side of the economy, potentially dragging down long-term U.S. growth. Meanwhile, when recession comes, it'll definitely push the unemployment rate up to 5.3%. The prediction follows Trump's new 10% tariffs announcement, which he imposes on all countries importing goods into the United States, in addition to tax levies that have already been imposed on 60 trading partners (including Mexico, China, and Canada) with a persistent trade deficit with the US.
