Join 250,000+
professionals today
Add Insights to your inbox - get the latest
professional news for free.
- Just 1 email every week
- 3-min easy reads
- Uninterrupted updates
Join 250,000+
professionals today
Add Insights to your inbox - get the latest
professional news for free.
From Boom to Blur: The U.S. GDP Story in 2025
Join our 250K+ subscribers
Join our 250K+ subscribers
Subscribe07 MAY 2025
After a shaky start to 2025, the outlook for the U.S. economy is cautiously improving. JPMorgan has raised its 2025 GDP forecast from 0.2% to 0.6%, citing the White House’s decision to ease tariffs on China as a key reason for the shift. With reciprocal tariffs paused and a temporary U.S.-China trade deal in place, recession fears, once hovering above 50%, are now fading. Inflation also surprised to the downside. The April Consumer Price Index (CPI) rose just 2.3% year-over-year, its slowest pace since February 2021, while core inflation remained steady at 2.8%. Markets responded calmly, and Treasury yields dipped as investors welcomed the reprieve.
Still, economists warn that the inflation impact of Trump’s sweeping tariffs, implemented in early April, may not appear until June or later. The Fed held interest rates steady at its May meeting, signaling a wait-and-see approach amid “stagflation” concerns. Goldman Sachs and Deutsche Bank both noted that headline inflation data may not reflect the true cost pressures consumers will face in coming months. As tariff policy continues to evolve, both consumer sentiment and investor confidence are riding waves of uncertainty, making Q2 and Q3 critical for understanding the trajectory of 2025.
Until next time…
Don’t forget to share this story on LinkedIn, X and Facebook
📢MYCPE ONE Insights has a newsletter on LinkedIn as well! If you want the sharpest analysis of all accounting and finance news without the jargon, Insights is the place to be! Click Here to Join
