Trump’s tariffs will tip America into recession, warns JP Morgan
Donald Trump’s tariffs will tip the world’s largest economy into recession, America’s biggest investment bank has warned.
Investment bank JP Morgan has torn up its growth forecasts for the US, after global stocks tumbled and wiped more than $5 trillion (£3.8 trillion) off America’s most valuable companies in only two days.
The investment bank downgraded US growth by 1.6 percentage points for this year, while predicting far higher unemployment that could leave nearly 2m additional Americans jobless.
Michael Feroli, JP Morgan’s chief US economist, said: “We now expect real GDP to contract under the weight of the tariffs. For the full year, we now look for real growth of -0.3pc, down from 1.3pc previously.”
The bank’s warning came as America’s baseline 10pc levies on almost all countries, including Britain, took effect.
Other investors said the trade war ignited by the White House on April 2 threatened to plunge Britain’s debt-bloated economy into a Greek-style debt crisis. [Continue reading…]
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Trump on Friday shared an outlandish social media video that defends his recent policy decisions by arguing he is deliberately taking down the market as a strategic play to force lower interest and mortgage rates. [Continue reading…]