Federal Reserve member Thomas Musallem has warned of a substantial slowdown in the U.S. economy, predicting GDP growth below trend levels in 2025. This prediction is attributed to rising import tariffs, which are expected to subtract 0.8% from GDP growth over the coming year. Musallem’s outlook is driven by concerns about inflation and labor market trends, as these factors will influence future monetary policy decisions. The Fed member notes that increased import tariffs impact consumer costs and business confidence, leading to a deceleration in economic activity. 2%, or a rate below trend levels, is expected for the U.S. economy according to Musallem. His comments align with data forecasting of 1.7% to 2.4% GDP growth between now and 2025.