Economist: Trump's Trade War Will Cause 'Cataclysmic Recession' [View all]
According to a report at Bloomberg, the chief economist at a major investment firm is warning the investment community that they are not taking President Donald Trump’s trade war seriously and that it may cause a cataclysmic global recession if he doesn’t back off.
“A recession could begin in as soon as nine months if President Donald Trump pushes to impose 25% tariffs on additional $300 billion of Chinese imports and China retaliates with its own countermeasures, according to Chetan Ahya, chief economist and global head of economics at Morgan Stanley,” Bloomberg is reporting, while noting that stock market just had its worst month of the year.
According to Ahya’s Sunday cautionary note, “Growth will suffer as costs increase, customer demand slows and companies reduce capital spending.”
According to Ahya, holding off the recession may already an impossible task at this late date, stating, “As the negative effects of the tariffs become more apparent, it may be too late for political action,” Bloomberg reports.
https://www.bloomberg.com/
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