“The US economy will sink in 90 days if there are no agreements: the Fed will not be able to do anything”
“The US economy will sink in 90 days if there are no agreements: the Fed will not be able to do anything”
Jim Bianco, CEO, Bianco Research, mentions how the United States has been facing problems due to its large commercial deficit, especially with China, which has led to the implementation of tariffs under the Trump administration. These tariffs were designed to correct the commercial imbalance, but their application has generated volatility and even animosity both within the country and in international markets. In recent weeks, however, there seems to be a slight reversal of these policies, with some tariffs being retired, which could indicate that commercial tensions are beginning to relax.
The expert also discusses the possibility of a recession in the United States if real commercial agreements are not reached within the next 90 days, since the economy, despite being in a relatively stable situation for now, could face serious problems if commercial policies return to the previous state. This situation is unusual, since most of the time market expectations are contrary: when the economy is in difficulties, a short -term recovery is anticipated. However, now the panorama is uncertain and the concern is that the US economy could make it significantly worsen if trade agreements are not made.
