As GDPNow's expectations for US GDP in the second quarter continue to rise, and with the suspension of US tariffs on China, JPMorgan no longer expects the US to enter an economic recession in 2025 and has lowered its expectations for inflation. This is both a good thing and not necessarily a good thing. The resilience of the economy gives the Federal Reserve more confidence to ensure that tariffs will only have a one-time impact on inflation, and that rising GDP and consumption may indeed increase inflation in the short term.