The new outlook from JPMorgan is in line with futures market pricing and comes after President Donald Trump said on Thursday the United States will impose a 5pc tariff on all goods coming from Mexico starting on June 10 until illegal immigration across the southern border is stopped.

The White House said the tariff could increase as high as to 25pc by October, which JPMorgan said may require "much more" than a 0.50pc reduction in the Fed's target rate.