Part 4/9:
Increased Economic Risks: A Broader Perspective
JP Morgan also voiced concerns by raising the probability of a U.S. recession by the end of the year to 40%. Their assessment indicates that extreme U.S. policies are driving uncertainty in global markets. Similar downgrades were seen from Morgan Stanley, which lowered its GDP growth forecast to just 1.5% and raised inflation expectations to 2.5%.
Interestingly, despite this gloomy outlook, there remains an argument that the U.S. economy still possesses robust structural advantages that could mitigate some of the risks being discussed.