According to BlockBeats, Morgan Stanley's Chief Economist Seth Carpenter has highlighted a noticeable slowdown in U.S. economic growth, attributing it significantly to the country's tariff policies. Carpenter anticipates that the consequences of these policies will continue to unfold in the coming months. He forecasts that the U.S. economy will experience weak growth in the fourth quarter of this year and the first quarter of next year. By 2026, the economy is expected to grow by only about 1.25%, a significant drop from the 2.8% growth seen in 2024.
Carpenter also pointed out a weakening U.S. labor market compared to a few months ago. Recent data indicates that from March 2024 to March 2025, the number of new jobs created was only half of the initial expectations. Additionally, signs of weakness are emerging in U.S. industrial production.