Money

JPMorgan predicts recession due to Trump’s tariffs

JPMorgan forecasts US recession due to Trump’s tariffs; GDP growth revised down, unemployment expected to rise.

Published

10 months ago

April 5, 2025

Ahron Young

JPMorgan forecasts US recession due to Trump’s tariffs; GDP growth revised down, unemployment expected to rise.

In Short

JPMorgan Chase & Co. predicts a US recession in 2025 due to Trump-era tariffs, with GDP growth potentially falling to -0.3% and unemployment rising to 5.3%.

Following these announcements, major financial institutions have lowered growth forecasts, while the Federal Reserve may begin cutting interest rates despite inflation concerns.

JPMorgan Chase & Co. has projected that the US economy is likely to enter a recession in 2025 due to the tariffs imposed by the Trump administration.

The bank’s chief US economist, Michael Feroli, indicated that real GDP growth could contract by 0.3%, a significant drop from the previously expected growth of 1.3%. This contraction may also lead to decreased hiring and an increase in the unemployment rate to 5.3%.

Following the announcement of the tariffs, the S&P 500 index experienced a significant decline, resulting in a loss of $5.4 trillion in market value over just two trading sessions.

US imports

Other financial institutions, including Barclays and Citi, have similarly adjusted their projections for US economic growth downward, with Citi estimating growth at only 0.1% for the year. UBS has forecast a more than 20% reduction in US imports in the coming quarters.

Feroli anticipates that the Federal Reserve will begin cutting interest rates starting in June, reducing the current benchmark rate to between 2.75% and 3%. This decision comes despite a projected rise in inflation.

Fed Chair Jerome Powell recently stated that there is no urgency to adjust rates amidst strong hiring figures and a slight rise in unemployment to 4.2%. Investors are expecting significant rate cuts by the end of the year.

Money

U.S. dollar weakens while Australian dollar rises amid global market shifts

Published

3 days ago

January 30, 2026

Harvey Vargas

US dollar weakens as Trump comments; Australian dollar gains from commodity prices and RBA rate hike expectations

The US dollar is coming under pressure as the economy remains strong and President Trump comments on its decline. We explore how this is impacting major currencies around the world and what it means for investors.

Meanwhile, the Australian dollar is benefiting from rising commodity prices and growing expectations of an RBA rate hike. Global investors are increasingly drawn to Australia’s bond market as economic conditions shift.

Currency trading strategies are adapting to this changing landscape, with potential implications for interest rates and international markets. Steve Gopalan from SkandaFX breaks down the trends.

Subscribe to never miss an episode of Ticker – https://www.youtube.com/@weareticker

#USDDollar #AustralianDollar #ForexTrading #RBA #InterestRates #GlobalEconomy #CurrencyMarket #Ticker

Money

Wall Street slides as AI spending raises investor concerns

Wall Street dips as AI spending scrutiny rises; Microsoft struggles while Meta thrives. Tune in for insights!

Published

3 days ago

January 30, 2026

Harvey Vargas

Wall Street dips as AI spending scrutiny rises; Microsoft struggles while Meta thrives.

Wall Street closed lower on Thursday, with the Nasdaq leading losses as investors questioned whether Big Tech’s massive AI spending will pay off. Microsoft shares tumbled after revealing record AI infrastructure costs, while Meta rallied on strong earnings and a bullish outlook.

Kyle Rodda from Capital.com joins us to explain what spooked markets, which tech names are holding up, and whether AI budgets are getting too big.

We also discuss rate expectations, macro risks, and what to watch in the upcoming earnings season.

Subscribe to never miss an episode of Ticker – https://www.youtube.com/@weareticker

Money

Tesla brand value plummets amid Elon Musk’s political focus

Tesla’s brand value plummeted to $27.61 billion in 2025 amid Musk’s political shift, sparking investor concern.

Published

5 days ago

January 28, 2026

Harvey Vargas

Tesla’s brand value plummeted to $27.61 billion in 2025 amid Musk’s political shift, sparking investor concern.

Tesla’s brand value plummeted by $15.4 billion in 2025, falling to $27.61 billion from $66.2 billion in early 2023. Analysts say Elon Musk’s political focus and a slowdown in new models have distracted the company’s core business.

In the U.S., Tesla’s recommendation score sank to just 4 out of 10, down from 8.2 in 2023. Despite this, loyalty among existing owners remains high at 92 per cent, showing a strong but shrinking fan base.

#TeslaNews #ElonMusk #BrandValue