World Markets Formation: Is the US recession inevitably after Donald Trump tariffs? | Einsmark news

The reciprocal rates announced by US President Donald Trump have raised the fear of the global recession amid a strong market accident. “We now expect Real GDP to contract under the weight of the rates, and for the full year (4Q/4Q) we are now looking for a real GDP growth of -0.3%, lower than 1.3% before,” according to a Bloomberg report with reference to JPMorgan Chase & Co Chief American economist Michael Feroli. “The predicted contraction in economic activity is expected to rent and over time raise the unemployment rate to 5.3%,” Feroli added. A baseline rate of 10% will be imposed on all imports, while separate rates for certain trading partners have been announced. After the announcement, the S&P 500 index of US stocks dropped the lowest level in 11 months and wiped $ 5.4 trillion market value in only two trading sessions to close the week.