According to Odaily, Sylvia Sheng, a global multi-asset strategist at JPMorgan Asset Management, has expressed insights on the potential effects of former President Donald Trump's economic policies on the U.S. economy. Sheng suggests that while these policies could generally benefit the economy, the sequence of their implementation will be crucial in determining the growth trajectory over the next two years.
Sheng highlights that a focus on deregulation and extending tax cuts could enhance corporate confidence, open capital markets, and accelerate both growth and asset returns. This approach may lead to a more favorable economic environment, fostering increased investment and expansion opportunities for businesses. However, she warns that if the emphasis shifts towards immigration and tariff policies, there could be disruptions in labor supply or trade, which might have adverse consequences. Such disruptions could potentially hinder economic growth and trigger volatility in asset markets.
Despite these uncertainties, JPMorgan anticipates robust growth for the U.S. economy by 2025. The firm projects that by the fourth quarter of that year, the GDP will decelerate to a trend level of 2.0%. This outlook reflects a cautious optimism, balancing the potential benefits of policy-driven economic stimulation against the risks of policy-induced market fluctuations.
