US economy to worsen in H2 2025 … ‘payback’ time

A research note from Citi, via a CNBC report, paints a bleak picture for the economy in the months ahead:

• economy to worsen in H2 2025
• “As the full effects of the tariffs come online — likely over the next few months — demand could face a double blow. The tariffs could reduce real purchasing power, and in addition, frontloaded purchases will be ‘paid back‘”
• “As such, we view the current period as still the ‘calm before the storm,’ and we expect growth in the second half of the year to weaken.”

September Federal Reserve rate cut?

This article was written by Eamonn Sheridan at www.forexlive.com.