Prudential: Tariffs may rise to 15% after the midterm elections

Prudential economist Robert Sockin stated that the split in the U.S. government after the midterm elections could lead to tariff rates increasing from about 10% to nearly 15%, maintaining inflationary momentum.

Prudential expects the Federal Reserve to raise interest rates by 100 basis points, with the next rate hike occurring in December. The probability of the U.S. economy overheating is 40%, while the probability of a recession has been adjusted to about 25%.