- Trump’s tariffs spark fear of recessionthe outlook for inflation is higher, causing stocks to throw and darken consumer sentiment, but his administration claims the focus is on the long term.
S&P 500 Index Lost Just three weeks later, it’s worth $5 trillion Enter Territory corrections were made Thursday about President Trump’s fears of tariff threats. But Treasury Secretary Scott Bessent was the head of hedge funds before his political appointment, and he was not worried.
“I don’t care about the volatility of three weeks,” Tell CNBC Thursday. He focuses on the long term.
Previously continued warn In the economy’s “detox”, he doubled in Thursday’s interview, claiming that the economy always has to transition. But when asked if this is an euphemism to the recession, Becente said: “Not at all. It doesn’t have to… our goal is to make a smooth transition.”
Despite this, Americans are worried. Latest information from the University of Michigan Consumer sentiment fell 11% this month Emotional Investigation Release on Friday. This marks a third straight month of sentiment decline. Consumer sentiment fell 22% compared to December one month after Trump’s election.
Even after inflation, most of the financial world does not sell it. cool down Exceeded expectations. Some economists suspect that inflation may rise again once Trump’s tariffs have time to take effect. “The back and forth shock to tariffs is a huge and unpredictable upside risk for the inflation outlook,” Bill Adams comica Bank, tell wealth In a statement after the data was released Wednesday.
Investors are worried that long-term tariffs could exacerbate higher inflation while weighing economic growth, which will lead to scattering, Evercore Analysts wrote in a note earlier this month. According to a research report on Wednesday, economists at JPMorgan Chase also saw that Trump’s tariffs resulted in higher inflation and slower growth.
Economists believe that the reason tariffs increase inflation is because when companies are forced to pay additional taxes, they tend to transfer these higher costs to consumers, which may lead to a decrease in economic activity or a slower growth rate.
Other economists and analysts are more worried about the United States’ recession. Trump said in an analysis earlier this week that Trump “has changed his stance on tariffs for some time.” “Recently, it has heightened concerns that policy uncertainty could put the U.S. economy into recession.”
Former Treasury Secretary Larry Summers also said Economic recession. He accused him of what he called one-off, out-of-time tariffs and put the chances of a recession close to 50%.
But, in the Trump administration, Bethenz is not without a doubt, and chooses not to rule out the recession. When asked in Thursday’s interview whether Vice President JD Vance could rule out the recession, he answer: “You can never predict the future, but I think the fundamentals of the economy are very strong now, but we will see how this develops.” Vance said like Best, the government is focused on long distances.
exist interview On Sunday, Trump also did not rule out the recession, but said there would be a “transition period” that would be a harbinger of what will happen in the coming week. As of writing, the S&P 500 index fell 8.17%, Dow Jones Falling 7.20%, technology heavy Nasdaq Despite Friday’s modest, it has fallen 11.76% in the past month assembly.
This story was originally fortune.com
Source link
