Tariff Photo:VCG
As the US’ reciprocal tariff is
MK socksscheduled to take effect on April 2, domestic worries from the US have been worsening, with some negative impacts already showing, according to media reports.
Goldman Sachs expects aggressive duties from the White House to raise inflation and unemployment and drag economic growth to a near-standstill.
In a note Sunday, the firm said “we continue to believe the risk from April 2 tariffs is greater than many market participants have previously assumed,” CNBC reported on Sunday local time.
The firm raised its forecast for inflation this year to 3.5 percent, cut its GDP outlook to just 1 percent and raised its unemployment view to 4.5 percent. Moreover, the investment bank now expects a 35 percent chance of recession in the next 12 months, up from 20 percent in the prior outlook, according to the CNBC report.
CNBC also reported on Friday that the Federal Reserve’s key inflation measure rose more than expected in February while consumer spending also posted a smaller-than-projected increase, citing the US Commerce Department.
The core personal consumption expenditures price index showed a 0.4 percent increase for the month, the biggest monthly gain since January 2024, putting the 12-month inflation rate at 2.8 percent. Economists surveyed by Dow Jones had been looking for respective numbers of 0.3 percent and 2.7 percent, the report said.
“There is no other conclusion possible other than the Trump 2.0 economic policies are frightening consumers as much as they do corporations,” Chris Rupkey, chief economist at FwdBonds, wrote in a note on Friday. “The economy is going to stall out if not something worse if Washington policymakers are not careful,” CNN reported.
Reuters reported that a survey from the University of Michigan on Friday showed consumers' 12-month inflation expectations soared to the highest level in nearly two and half years in March. Even more worrisome, consumers anticipated inflation would remain elevated in the years beyond.
Global Times
