JPMorgan Chase: Trump's tariffs bring in $400 billion in tax revenue, while also posing a threat of recession
Golden Finance reports that JPMorgan's chief economist, Michael Feroli, stated in a report that Trump's tariffs will bring considerable revenue but at the cost of rising prices, which could affect consumer purchasing power. He wrote: "On a static basis, the tariffs announced today will increase revenues by nearly $400 billion, about 1.3% of GDP. We estimate that measures announced today may cause this year's personal consumption expenditure prices to rise by 1-1.5%, and we believe inflationary effects will be realized mid-year. The resulting hit to purchasing power could lead to negative growth in real disposable personal income from the second quarter to the third quarter, potentially causing contraction in actual consumer spending during these quarters as well. This effect alone could put the economy at risk of recession."
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