Will the US Economy Stay Strong or Start to Decline?
Is the US really heading into a recession? Many people are worried about this question. President Trump promised a new era of prosperity during his campaign last year. Now, two months into his term, he warns that it may take some time to bring back wealth. He mentioned that prices might not drop quickly and that a “little disturbance” could happen before things improve.
Recent data shows that inflation is slowing down. However, many experts believe the risk of a recession is growing. A report from JP Morgan now estimates a 40% chance of a recession, up from 30% earlier this year. Mark Zandi, chief economist at Moody’s Analytics, raised his estimate from 15% to 35%, blaming tariffs for the change.
These tariffs are taxes on imported goods. Trump has put tariffs on products from America’s major trade partners. This move makes imported goods more expensive.
The stock market is showing a big loss, the S&P 500, which tracks 500 big US companies has dropped to its lowest level since last September. Many investors fear that this decline could lead to a further pullback in spending, especially among wealthier households.
Some retail sales have fallen, and both consumer and business confidence have weakened. Major companies, including airlines, big retailers, and manufacturers, are cautioning that a slowdown in spending is coming.
Even though the US central bank says the economy is strong, many experts are worried. Tariffs, uncertainty, and slower growth are raising the risk of a recession. Stay tuned for more updates.
