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Fitch Ratings warns of lower growth, higher inflation, and less Fed rate cuts in 2025

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Fitch Ratings warns of lower growth, higher inflation, and less Fed rate cuts in 2025

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New update 2025.04.04 01:56
Fitch Ratings warns of lower growth, higher inflation, and less Fed rate cuts in 2025

update 2025.04.04 01:56

The Fitch Ratings agency downgraded its expectations for US Gross Domestic Product (GDP) growth in 2025 on Thursday, specifically highlighting that the Trump administration's "Liberation Day" tariff announcement poses a direct risk to US economic health.

Key highlights

  • Liberation Day takes US tariff rates back to a level last seen in 1909.
  • US growth in 2025 is likely to be slower than the 1.7% that we had projected in March, given higher-than-anticipated tariffs.
  • Tariff hikes will result in higher consumer prices and lower corporate profits in the US.'
  • Upward pressure on goods prices from tariffs means the Fed is likely to become more cautious about further rate cuts in the near term.

Date

Created

 : 2025.04.04

Update

Last updated

 : 2025.04.04

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