US Economy Heading Closer Towards Recession Over Trade War: Reuters Poll

A recent Reuters poll reveals that the Federal Reserve could cut interest rates again as soon as September over rising worries of recession

Recession

A recent Reuters poll reveals that the Federal Reserve could cut interest rates again as soon as September over rising worries of the US economy slipping into recession as a result of the ongoing trade war. Economists polled expect a 45% likelihood that the US economy could fall into recession within the next two years.

Ever since Trump announced more tariffs on Chinese imports, the trade war had continued to dominate the market sentiment globally, increasing the demand for safe haven assets and causing sell-off in equities. China has already cautioned that the fallout of these latest developments could result in chaos in global financial markets.

Markets are now expecting the Fed to cut interest rates by 0.25% in September, and follow this with more another round of rate cuts in October. Presently, there is also a 40% possibility of one more rate cut in December.

Among the economists surveyed, almost 70% felt that these latest developments on the trade war front had brought the US economy closer to recession.

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

Related Articles

Federal Reserve Chair Jerome Powell has sounded the alarm on a potential trade standstill reminiscent of the pandemic era — a scenario...
2 days ago

Comments

0 0 votes
Article Rating
Subscribe
Notify of
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

HFM

Doo Prime

XM

Best Forex Brokers