JPMorgan warns US tariffs could trigger stagflation

JPMorgan cut its projection for U.S. GDP growth in 2025 to 1.3%, warning of increasing stagflation risks as tariffs rise and inflation remains persistent.

The Federal Reserve is expected to delay any interest rate cuts until December, contrary to market expectations, amidst concerns over ongoing inflation.

The market has reacted to tariff announcements, resulting in higher Treasury yields. A 40% chance of recession in the latter half of 2025 adds to the economic uncertainty.