JPMorgan has raised the probability of an economic recession to 40%, and investors are fleeing risk assets

ChainCatcher news, economists at Wall Street investment bank JPMorgan have raised the risk of an economic recession this year from 30% in early 2025 to 40%.

The Wall Street Journal reported that analysts wrote, "Due to extreme policies in the U.S., we believe the risk of the U.S. falling into recession this year is significant."

Previous news, Morgan Stanley economists downgraded their economic growth expectations last week and raised their inflation expectations. The bank predicts that the GDP growth rate will be only 1.5% in 2025 and will drop to 1.2% in 2026. Goldman Sachs economists also raised the probability of a recession in the next 12 months from 15% to 20%.