Growing speculation surrounds a Federal Reserve emergency rate cut linked to Trump’s tariffs, which have heightened recession fears. The financial markets, notably Wall Street, reacted negatively to the tariff announcements.
The upcoming Federal Open Market Committee (FOMC) meeting on May 7 shows a 71.8% probability of maintaining current interest rates, with platforms like Polymarket indicating a 75% chance of no changes.
Economist Peter Schiff suggests China could alleviate its trade deficit by selling U.S. Treasuries for gold, which may adversely affect the U.S. Economy. Nonetheless, Trump’s trade advisor has downplayed recession risks, labeling the market declines as an opportunity.
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