Recent escalation of the United States-China Trade War is destined to lead to the upcoming U.S. recession, as stated by majority of the economists who polled for a Reuters’ survey. As a result, the economists now expect Federal Reserve officials to chop down the rates again during the month of September & along with another to be followed up next year.
Despite the expectations for easing in times ahead, the August 6th to 8th poll gave the median a 45 percent probability for the United States economy slipping back into recession in upcoming 2 years time frame. This number was up from the 35 percent probability which was determined in the last poll. This was the highest following when this question was initially asked in the month of May 2018.
A closely monitored gauge for the bond market for the U.S. recession flashed the biggest-ever warning on Monday following the one on March 2007. This underscored the concerns that a spill over from battle between global top-rankers could lead to a world-wide downturn.
Just last week, Donald Trump, the U.S. President mentioned that a 10 percent tariff upon the additional fees of $300 Billion over Chinese goods shall be added henceforth.