Recent changes in President Trump’s trade rhetoric raise concerns about inflation and impact economic forecasts.
Trump's Rhetoric and Economic Impact
On July 15, 2025, President Trump intensified his trade statements, causing uncertainty in the global economy. This prompted analysts at JPMorgan Global Research to revise their macroeconomic forecasts for 2025. Now, a decrease in U.S. GDP growth to 1.3% and an increase in core PCE inflation to 3.1% are expected. These changes may compel the Federal Reserve to reconsider its monetary policy strategy.
Mislav Matejka, Global Head of Research at JPMorgan, remarked, "We believe the key risk for our base case and especially the riskier segments of the market is one where the disinflation progress fully stalls and starts to reverse, forcing the Federal Reserve to open doors to potential hikes later in 2025 or early 2026."
Cryptocurrency Market Amid Economic Uncertainty
As inflation concerns rise, assets like Bitcoin are increasingly appealing to investors. Bitcoin, currently trading at $116,912.76 with a market cap of $2.33 trillion, shows resilience in volatile markets. Despite a 4.28% drop in the last 24 hours, interest in it remains high due to its potential as an inflation hedge. The Coincu research team notes that rising inflation concerns could lead to increased regulatory impacts on digital assets.
Conclusion and Outlook
The increasing trade rhetoric and changes in economic policy may significantly impact forecasts and expectations in the markets. Investors continue to seek hedge assets like Bitcoin amid uncertainty, highlighting the dynamic changes in financial markets.
Changes in Trump's rhetoric and their impact on inflation reflect the current economic challenges, prompting investors to reevaluate their strategies.
