Banking Giants Warn of Recession Risks from Trump’s Tariff Proposals
Leading figures in the banking sector, including Jamie Dimon of JPMorgan Chase and executives from Goldman Sachs, have expressed significant concerns over the potential economic fallout from former President Donald Trump's proposed tariffs. In a series of statements and interviews, these financial leaders have warned that such policies could steer the U.S. economy towards a recession.
Jamie Dimon, in a recent interview with CNN, highlighted the dangers of escalating trade wars, suggesting that Trump's tariff plans could disrupt global trade and negatively impact economic growth. Similarly, a report from Goldman Sachs, as covered by The Independent, analyzed the potential for these tariffs to increase costs for consumers and businesses, thereby slowing down economic activity.
The warnings come at a time when the U.S. economy is showing signs of recovery from previous economic challenges. NPR's coverage emphasized the delicate balance policymakers must maintain to avoid tipping the economy into a downturn. The banking industry's vocal opposition to the tariffs underscores the high stakes involved in upcoming economic policy decisions.
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What is a recession in economics?
The National Bureau of Economic Research (NBER) defines a recession as a “significant decline in economic activity that is spread across the economy, lasting more than a few months.”
What happens if there is a recession in the US?
What happens in a recession? A shrinking economy can cause a cascade of stressful ripple effects, including lower employment, deteriorating stock market results and higher borrowing costs for consumers and companies, according to Fidelity.
What happens to the stock market in a recession?
Stage 2: Recession During a recession, stock prices typically plummet. The markets can be volatile with share prices experiencing wild swings. Investors react quickly to any hint of news—either good or bad—and the flight to safety can cause some investors to pull their money out of the stock market entirely.
What is Trump's trade war?
An economic conflict between China and the United States has been ongoing since January 2018, when U.S. President Donald Trump began setting tariffs and other trade barriers on China with the goal of forcing it to make changes to what the U.S. says are longstanding unfair trade practices and intellectual property theft ...
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