A sharp slowdown in the US economy is becoming increasingly likely due to rising tariffs, according to a recent Reuters poll. The risk of recession has jumped to 45%, highlighting concerns over the impact of trade policies on the country’s economic growth.
The poll, which analyzed the views of experts in the field, found that many are predicting a significant slowdown in US economic activity in the coming months. This is largely due to the ongoing tensions between the US and its trading partners, particularly China, which have led to increased tariffs on goods imported into the country.
The surge in inflation expectations has also added to the concern, with many experts warning of a potential price bubble in certain sectors. The latest data from the Bureau of Labor Statistics showed a slight increase in inflation rates last month, sparking fears that the Federal Reserve may need to raise interest rates sooner than expected.
As the US economy continues to grapple with these challenges, policymakers are facing increased pressure to address the issue. With the risk of recession rising, investors are becoming increasingly cautious, leading to decreased stock market confidence and higher borrowing costs for businesses.
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Source: https://www.reuters.com/markets/us/tariffs-trigger-sharp-us-economic-slowdown-chance-recession-jumps-45-2025-04-17