JPMorgan Chase has issued a grim economic forecast, warning that a Trump victory in the upcoming election could lead to a dangerous combination of slow growth and high inflation.
Tariffs: A Recipe for Disaster
According to JPMorgan’s Chief Global Strategist David Kelly, Trump’s plan to raise tariffs on imports could create a perfect storm for “stagflation.” Tariffs, he explains, slow down economic growth while simultaneously driving up prices.
Immigration and Tax Cuts: More Economic Woes
Kelly also raised concerns about Trump’s immigration policies and the future of the 2017 tax cuts. He warned that a halt in immigration could further weaken the economy, while extending the tax cuts could lead to a surge in long-term interest rates and increased debt.
Biden’s Economic Policies: Mixed Reviews
Kelly did not provide a specific outlook for the economy under a second Biden term. However, JPMorgan CEO Jamie Dimon previously stated that Biden’s current policies are “partially working,” noting the positive impact of infrastructure spending. However, he also acknowledged that many Americans still feel left behind by the economy.
