JPMorgan Chase CEO Jamie Dimon said Wednesday that the US economy is likely heading into a recession as President Donald Trump’s tariffs Roil Financial Markets.
The trade war between the US and China has once again actively sold stocks and bonds in morning trade. Stock market futures surge amid concerns over financial and economic stability brought about by exchanges at speeds between the two countries, and bonds surge.
“I think that’s probably the result, because when the market sees a 2,000-point decline (the industrial average for the Dow Jones), it’s not feeding itself,” Dimon told Fox Business’s “Morning with Maria” show. “It makes you feel like you’re losing money on your 401(k), you’re losing money on your pension. You have to cut it.”
Recession fears are rising on Wall Street as Trump’s tariffs spur uncertainty about how far the trade war will escalate.
In its latest development, China said it will slap 84% of the tariffs on all US goods as US mutual obligations are enforced worldwide. Dow futures were over 800 points, but in 2010, the Treasury’s yield soared to nearly 20 basis points, or 0.2 percent points.
JP Morgan Economist expects US GDP to be contracted to 0.3% this year.
“The market isn’t always right, but sometimes it’s right,” Dimon said. “This time, I think it’s just the pricing (at) at the actual company level at the macro level, macro level and uncertainty (at) and how that affects consumer sentiment. It’s hard to convey.”
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