'U.S. economy to avoid recession even after tariff hike - Wells Fargo'

 The U.S. economy is expected to avoid recession, even though the tariff “tax hike” was among the top three of the past 60 years, according to the Wells Fargo Investment Institute. 

"U.S. tariff increases have been unexpectedly aggressive and, in our view, should be seen as a substantial tax increase," Wells Fargo said in a note.

Economic policy has taken center stage in Wells Fargo's 2025 outlook.

However, key supports will help the U.S. economy to avoid a recession and also see a mild recovery from late 2025 through 2026, Jennifer Timmerman, investment strategy analyst at Wells Fargo, said.

"We also expect more positive forces to kick in late in 2025, including tax cuts, lower short-term interest rates, and improved purchasing power from oil-price declines and solid real (inflation-adjusted) income growth," Timmerman added. 

 

Wells Fargo Investment Institute
https://www.msn.com/en-us/money/markets/u-s-economy-to-avoid-recession-even-after-tariff-hike-wells-fargo/ar-AA1GuJ9i?ocid=finance-verthp-feeds