According to BlockBeats, JPMorgan analysts have expressed concerns that U.S. tariff policies may hinder global economic growth and reignite inflation within the United States. The bank's mid-year outlook report suggests a 40% chance of the U.S. entering a recession in the latter half of the year. The forecast for U.S. economic growth in 2025 has been revised down to 1.3%, compared to the initial prediction of 2%. The report attributes the downgrade in GDP growth expectations to the stagflation effects caused by increased tariffs.
JPMorgan holds a bearish view on the U.S. dollar, citing the slowdown in U.S. economic growth. The bank anticipates that growth-supporting policies outside the U.S. will bolster other currencies, including those from emerging markets. Analysts at JPMorgan expect the Federal Reserve to cut interest rates by 100 basis points between December and spring 2026. They note that a recession or a more significant economic slowdown than anticipated could trigger a more aggressive rate-cutting cycle. Despite policy uncertainties, JPMorgan remains optimistic about the U.S. stock market, highlighting the resilience of consumers and the economy.