The US economy is on "fertile ground" to see a recovery in the second half of 2025, Wells Fargo says.

Vanguard is cutting its forecast for U.S. economic growth and raising its expectations for inflation to account for the potential impact of President Donald Trump’s tariffs. Joe Davis, Vanguard’s global chief economist and the global head of Vanguard’s investment strategy group,

The US economy faces a growing risk of a recession as surging tariffs threaten to stunt growth, reignite inflation and lift unemployment, according to Goldman Sachs.

Trump, who pledged to fortify the US economy, is instead unleashing a wave of panic across markets and businesses.

JPMorgan believes the US economy will enter a recession in the back half of 2025 as the impact of President Trump tariffs takes hold in the economy. The firm's chief US economist Michael Feroli sees a two-quarter recession occurring in the back half of 2025 as GDP contracts by 1% in the third quarter of the year and by 0.

Alongside heightened expectations for a downturn in the US economy, the probability of a 25 basis points (bps) Fed rate cut in May also increased. According to the CME FedWatch Tool, markets are currently pricing in a nearly 72% probability of a Fed rate cut at the next meeting, up from about 20% on April 1.

Despite the panic or dread that many people felt, the recent drop does not predict an economic recession nor further stock market declines, they are certainly possible

Larry Summers has predicted that the U.S. could enter a recession because of President Donald Trump's tariff policies. Since Trump announced a minimum tariff of 10 percent on imports from nearly all U.