As 2025 approaches, major banks like Goldman Sachs, JPMorgan, and Bank of America are looking ahead with optimism. Inflation seems to be under control, jobs are steady, and consumers are still spending. But there’s one big question mark: Donald Trump’s tariffs.
Trump’s return to office could shake things up, especially with his talk of imposing hefty tariffs on China, Europe, and Canada. While some of his supporters are confident in his policies, economists are feeling more cautious. They worry that his tariffs could spark a trade war, push inflation higher, and slow down global growth.
JPMorgan is optimistic about 2025, predicting steady growth, but they also see a “fog of uncertainty” ahead. They warn that Trump’s tariff plans could push inflation to 2.7% by the end of the year, forcing the Federal Reserve to raise interest rates.
Bank of America is also cautious, suggesting that Trump’s aggressive tariffs could trigger a global slowdown. However, if he focuses on pro-growth policies, things might turn out better than expected.
Goldman Sachs isn’t too worried about the worst-case scenario, but they still see tariffs as a challenge that could delay inflation from reaching its target.
In short, while there’s hope for a strong economy in 2025, Trump’s tariffs could be the storm cloud on the horizon. Only time will tell how it all plays out!