PANews reported on April 18 that renowned economist Adam Posen warned that the possibility of an economic recession in the United States has increased due to the trade war initiated by the Trump administration, and the country may face the largest stagflation impact in decades. In his speech this week, Posen pointed out that even if Trump reaches agreements with various countries, tariffs may persist long-term, leading to price increases, inflation, and slowing economic growth.
He estimated the likelihood of the United States falling into a recession at 65%. Posen emphasized that the Federal Reserve has over-cut interest rates and may be unable to address rising prices, or may be forced to quickly raise rates, adding extra pressure to the economy. He also noted that Trump's economic policies have increased global uncertainty, and countries may unite to protect themselves from the impact of U.S. actions. Posen believes that repairing these damages could take years.
