Trump's tariff bomb will destroy America…?
Concern is increasing all over the world about America's economy. Now the global investment bank Goldman Sachs has increased the possibility of recession in America from 35 percent to 45 percent. This is the second consecutive time that they have increased this estimate in a single week. It is being told that the reason behind this is the increasing trade war between America and other countries and the heavy tariffs imposed by the trump government.
Possibility of recession all over the world
US President donald trump announced a tougher tariff than expected on april 2, which has created a stir not only in America but also in the global market. There was a huge decline in the stock markets and after this, one after the other investment banks started expressing the possibility of recession. JP Morgan says that the possibility of recession in America and the whole world has reached 60 percent.
Trump's tariffs can not only increase inflation in the US, but countries like china can retaliate, which threatens to worsen the situation. Goldman Sachs has reduced the US economic growth rate for 2025 from 1.5 percent to 1.3 percent. JP Morgan's estimate is even more worrying. They believe that the US economy can shrink by 0.3 percent in 2025.
The fire of trade war has now reached the US economy
Now all eyes are on the US central bank Federal Reserve (Fed). Goldman Sachs expects that the Fed will start cutting interest rates from june and there can be a cut of 25 basis points three times in a row. JP Morgan and Wells Fargo also now believe that interest rates can be reduced three to five times in 2025, so that the market can be supported. In a way, the fire of trade war has now reached the US economy. If this situation continues, then economic difficulties may increase for the whole world. Countries like india will have to make smart strategies in this situation, so that the impact of global slowdown can be reduced and new opportunities can be explored.
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