Wed, 12 Mar 2025

Wed, 12 Mar 2025 Is the US really heading into a recession?

Stock market falls, tariffs and other changes are reigniting fear of economic downturn in the US.
Economic analysts warn that the odds of a recession in the US are increasing, with some putting the chance at 40%. The forecast comes as the S&P 500 index falls to its lowest level since September. Tariffs and Government Spending Cuts Concern Investors Investors are worried about Trump's plans for tariffs on imports, which raise costs for US businesses and may curb growth. Big cuts to government spending and a workforce also concern economists. Trump Warns of Economic Disturbance In contrast to his previous boasts about the performance of the stock market, Trump now warns that Americans should be prepared for a "little disturbance" before he can bring back wealth to the US. Economic Experts Criticize Trump's Policies Analysts say Trump's policies are "tilting away from growth", with tariffs and government spending cuts likely to increase prices and curb investment. They warn of recession risks even as central bank head Jerome Powell tries to reassure investors that the economy remains strong. US Economy Linked to Global Trade Experts note that the US economy is deeply linked to global trade, making it vulnerable to disruptions caused by Trump's tariffs and government spending cuts. AI Bubble Concerns Growing The unease in the stock market has also been fueled by concerns about a correction, with some analysts warning of an "AI bubble" in tech stocks. With recession risks increasing, optimism about AI is getting harder to sustain.
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