J.P. Morgan Economic Update Highlights Inflation Risks and Slowing US Growth
J.P. Morgan's latest economic update reveals mounting pressures on the US economy, with Q4 2025 growth falling sharply to 0.7% annualized. A 17% plunge in federal spending and cooling consumer demand drove the weakness, though private sector activity showed resilience with 1.9% growth in final sales.
Labor markets flashed warning signals as February payrolls dropped 92,000 jobs and unemployment edged up to 4.4%. The three-month hiring average collapsed to 6,000 from January's 50,000, suggesting deteriorating momentum heading into spring.
Inflationary pressures continue building across multiple fronts, complicating the Federal Reserve's path. While the central bank maintains its hold stance, the report anticipates potential growth reacceleration in Q2-Q3 2026 as fiscal stimulus permeates the economy.
