New Tariffs Could Tip U.S. Economy Into Recession -- Market Talk
Dow Jones04-08
0401 GMT - Broad-based tariffs, if kept in place for a sufficient period, have the potential to tip the U.S. economy into a recession, says Benoit Anne, senior managing director at MFS Investment Management's strategy and insights group. While the U.S. consumer had been healthy, the tariff shock, which essentially acts as a tax on consumption, could significantly curtail domestic demand, he writes in a note. Business sentiment is likely to deteriorate, and patience will be needed to assess the macro risks, as the potential shock to private consumption will materialize with a lag of several months, Anne adds. (tracy.qu@wsj.com)
(END) Dow Jones Newswires
April 08, 2025 00:01 ET (04:01 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
At the request of the copyright holder, you need to log in to view this content
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
