JPMorgan: Trump's policies may be generally beneficial to the US economy, but how they are implemented will be key

Sylvia Sheng, global multi-asset strategist at JPMorgan Asset Management, said Trump's economic policies may be generally positive for the U.S. economy, but the order in which policies are implemented will determine the growth trajectory over the next two years. More emphasis on deregulation and boosting fiscal policy by extending tax cuts could boost business confidence, open up capital markets, and accelerate growth and asset returns. But if the focus is on immigration and tariff policies, disruptions in labor supply or trade could have negative consequences. This could dampen economic growth and trigger asset market volatility. Despite these uncertainties, JPMorgan expects the U.S. economy to grow strongly in 2025, with GDP slowing to a trend level of 2.0% by the fourth quarter. (Jinshi)