JPMorgan Says US Recession Is "Close" After Trump Tariffs
Several bank analysts, including those at JPMorgan, are fearful that a US economic recession is nearing after Donald Trump’s tariffs were launched on Wednesday. In a recent note, the U.S.’s biggest bank said that the tariffs “take the economy perilously close to slipping into recession.” The response is a cold one felt throughout Wall Street, as over $2 trillion has been wiped from the US markets in the last 24 hours. Michael Feroli, the chief U.S. economist at JPMorgan, says Trump’s speech was at the “very hawkish end of the range of expected outcomes” from his heavily teased tariff announcement Wednesday. The plan is equivalent to the largest tax increase since 1968, the JPMorgan analyst also wrote. It could add as much as 1.5% to prices this year, using the Federal Reserve’s preferred inflation gauge, while weighing on personal incomes and consumer spending. “This impact alone could take the economy perilously close to slipping into recession,” Feroli says. “And thi...
