# Prudential Economist Says Divided Government Could Lift Tariffs Near 15%

By Riza Dagoc

Canonical URL: https://www.tokenpost.com/news/regulation/55380
Published: 2026-11-12T12:33:37.000Z
Updated: 2026-11-12T12:33:37.000Z
Section: Regulation

> Prudential expects 100 basis points in Fed rate increases, with the next hike in December. It puts the chance of U.S. economic overheating at 40% and recession odds at about 25%.

A divided U.S. government after the midterm elections could push tariff rates from about 10% to nearly 15%, sustaining inflationary momentum.

Prudential expects the Fed to raise interest rates by 100 basis points, with the next increase in December.

The firm puts the chance of the U.S. economy overheating at 40% and has raised its recession probability to about 25%.