JPMorgan now sees a 60% chance of global recession and projects that the U.S. GDP will shrink by thirty basis points in the fourth quarter, revising its prior forecast of more than 1% growth. Trump’s announcement of the highest U.S. tariffs in over a century triggered a stock market crash. The selloff erased over $6 trillion in market value in just two days. The Fed is unlikely to cut rates amid rising inflation and increasing fears of stagflation. Economists warn that the policy shock could stall household spending and investment, with uncertainty already rattling businesses. Economists say the burden now falls on consumer resilience to avoid a downturn, as support from Congress and the Fed remains uncertain.
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00:00It's Benzinga bringing Wall Street to Main Street.
00:02JP Morgan now sees a 60% chance of global recession,
00:06projects the U.S. GDP will shrink by 30 basis points in the fourth quarter,
00:10revising its prior forecast of more than 1% growth.
00:13Trump's announcement of the highest U.S. tariffs in over a century triggered a stock market crash.
00:18The sell-off raised over $6 trillion in market value in just two days.
00:23That is unlikely to cut rates amid rising inflation and increasing fears of stagflation.
00:28Economists warn that the policy shock could stall household spending and investment,
00:32with uncertainty already rattling businesses.
00:35Economists say the burden now falls on consumer resilience to avoid a downturn.
00:39The support from Congress and the Fed remains uncertain.