JPMorgan suggested that the chance of a recession substantially increased due to President Donald Trump’s tariff announcement this week, according to a copy of a report provided to Fox News Digital on Friday.
The report, headlined “There will be blood” and dated April 3, warns, “these policies, if sustained, would likely push the US and possibly global economy into recession this year. An update of our probability scenario tree makes this point, raising the risk of a recession this year to 60%.”
In a statement to Fox News Digital on Friday, White House spokesman Kush Desai declared, “Chicken Little ‘expert’ predictions didn’t quite pan out during President Trump’s first term, and they’re not going to pan out during his second term when President Trump again restores American Greatness from Main Street to Wall Street.”
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Trump branded the day of his tariff announcement as “Liberation Day.”
The stock market was clobbered on Thursday in the wake of the president’s announcement and has been plunging again on Friday.
While speaking to Fox News Digital on Friday morning, Peter Schiff, chief economist and global strategist of Euro Pacific Asset Management, described tariffs as a “massive tax increase… in the form of higher prices for pretty much everything that Americans buy.”
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Some Republicans have been supportive of Trump’s tariff policies, while others have not.
Schiff said that there are people seeking to “cheer lead” the president’s actions, even individuals who “should know it’s an obvious mistake.” He said that due to “partisan politics,” people “refuse to call out … the mistake.”
“Trump is right in that the trade deficits are symptomatic of a big problem, and they need to be addressed,” Schiff said, adding that the issue is “not that other countries cheat.”
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The economics and political commentator, who hosts “The Peter Schiff Show” podcast, placed the odds of recession at “pretty much a hundred percent.”
He said that “we’ve probably been in recession for some time now. I think we were in recession for most of last year,” he said, opining that the economic data has not been accurate but will eventually be revised and reflect that a recession has been ongoing for a while.
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