According to Reuters, JPMorgan Chase considered a 60 percent possibility of stagnation in the global economy. The new trade policies implemented by the United States created uncertainty in global markets.
New US Trade Policies
The US tariff practices for China and the European Union led to tension in global trade. These measures will have negative effects on international commercial relations.
In a note published by JPMorgan Chase, the US’s “destructive” policies are the biggest risk elements for the global appearance throughout the year.
“US policies will increase its effect with the decline in business sensitivity and supply chain disruptions.” in the form of opinion.
It is stated that this will be partially balanced by the Federal Reserve in the future by making an interest rate reduction. But Powell’s latest statements still point to an inflation -oriented strategy.
2025 Economic Forecasts
Goldman Sachs, one of the major financial institutions, drew attention to the increase in the risk of recession in the US economy. In their predictions, the factors that are closely related to the US economy were included in the next 12 months.
Goldman Sachs, the previous assessment of 20 percent increased to 35 percent, he said. Another institution, HSBC, according to the assessment supported by market data, shares reflect the possibility of a stagnation of approximately 40 percent by the end of the year.
“The stock market has partially priced the risk of global recession.” He made a statement.
In recent weeks, the US President has brought 10 percent of tariffs to imported products within the scope of measures for certain countries, while mutual tariffs will be applied against some countries and we will begin to see the effect of these tariffs on Monday. These developments will cause chaos in global trade.
Market observers say that tariffs and other measures applied can put pressure on economic activity in the short term. Recession means crypto currencies just like inflation. If the FED intervenes late (Trump warned not to be late, and Powell did not care) we can see new bottoms in the crypto until July.
In the analysis, it is suggested that new policies and practices can have complex effects on global trade relations and economic recovery. In the opinions mentioned, it is emphasized that there is no final judgments and that market conditions vary continuously.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
