J.P. Morgan forecasts a U.S. recession in 2025 due to the impact of President Trump’s tariffs. In a note to investors, Michael Feroli, the firm’s chief U.S. economist, stated that GDP contraction is likely “under the weight of the tariffs.” The forecast predicts an unemployment rate rise to 5.3%. Following Trump’s recent tariff announcement, which imposes a 10% tax on imports, economists warn of potential economic slowdowns and job impacts. Retail prices are expected to rise, affecting consumer spending. Since the announcement, stock markets have plummeted, with the Dow Jones Industrial Average losing 2,231 points. The bank warns that tariffs could negatively affect the job market despite stable March job numbers. Past officials have cautioned about the adverse effects of tariffs on the economy.
— new from The Hill
