JPMorgan Cuts GDP Forecast, Citing Drag From Stock-Market’s Drop
- Economists see tighter financial conditions reducing outlook
- Unemployment rate may be slightly higher in 2023, they say
The JP Morgan Chase & Co headquarters in New York.
Photographer: Nina Westervelt/BloombergThis article is for subscribers only.
JPMorgan Chase & Co. economists cut their US economic forecasts for this year and next after judging that falling stock prices, higher mortgage rates and a stronger dollar relative to trading partners will weigh on the outlook.
In a report to clients, economists led by Michael Feroli on Wednesday lowered their growth outlook for the second half of 2022 to a 2.4% rate from 3%, for the first half of 2023 to 1.5% from 2.1% and for the second half of 2023 to 1% from 1.4%. That will result in a US unemployment rate in the second half of 2023 of 3.5% compared to an earlier view of 3.2%, the firm said.