JPMorgan sees stagflation signs as tariffs lift prices and US growth, jobs slow | investingLive

JPMorgan is warning that the US could face a “somewhat stagflationary” environment in the second half of the year, as early signs of tariff-driven price pressures combine with softer demand and a weakening labour market.

In a note on Monday, strategist Mislav Matejka said goods prices are starting to rise as the impact of tariffs filters through, even as consumption slows and payroll growth slips below what he called “stall speed.” The combination, he said, points to a more mixed labour market backdrop, which has led investors to largely expect the Federal Reserve to begin cutting interest rates at its September meeting.