While inflation remained relatively muted through May, consumer spending, which is the primary driver of U.S. economic growth, has started to sputter, as Americans pull back on purchases after months of stockpiling to get ahead of Mr. Trump’s tariffs.
David Kelly, the chief global strategist for J.P. Morgan Asset Management, still described the U.S. economy as a “relatively healthy tortoise,” resilient and expanding, slowly but surely. He projected that the nation’s gross domestic product, a measure of its total output, would grow about 1 percent by the end of 2025 compared with the year prior.But, he added, the economy has reached a “bit of a diversion in the road,” as some of Mr. Trump’s new policies start to take effect.