What we’re reading (4/3)
“Tariffs Send Wall Street Tumbling To Worst Day Since Pandemic” (New York Times). “The S&P 500 fell almost 5 percent on Thursday, its worst drop since June 2020, as allies and adversaries alike criticized President Trump’s action and weighed their responses.”
“A Market-Rattling Attempt to Make the American Economy Trump Always Wanted” (Wall Street Journal). “Perhaps the most striking aspect of Trump’s dramatic move to reposition the American economy is the timing. The economy he inherited was the envy of the world with growth of 2.8% last year, faster than almost every other major developed economy, an unemployment rate of just 4.1% and inflation of 2.8%. Stocks were at record highs.”
“JPMorgan Analysts Say Recession Risk Increased To 60% Since Trump Announced Tariffs: ‘There Will Be Blood’” (Business Insider). “In a research note to clients published on Thursday, JPMorgan's Bruce Kasman, along with several other company economists, warned that the risk of the global economy falling into a recession has increased from 40% to 60% in response to Wednesday's ‘Liberation Day’ tariff announcement.”
“America Is Headed For A Grim Fiscal Reckoning” (Michael Bloomberg). “Amid all the blaring headlines coming out of Washington, here’s a piece of news that is getting far too little attention: The US is on course for fiscal breakdown. That’s the unambiguous message from the Congressional Budget Office’s newly updated long-term projections. Unless Congress changes course, there’ll be a reckoning, and it will be grim.”
“Fed’s Cook Says Time For Patience On Policy Amid Inflation Risks” (Reuters). “Federal Reserve Governor Lisa Cook said on Thursday that the central bank can take its time to assess a highly unsettled environment before moving interest rates again, amid risks inflation could worsen due to tariffs. ‘Amid growing uncertainty and risks to both sides of our dual mandate, I believe it will be appropriate to maintain the policy rate at its current level while continuing to vigilantly monitor developments that could change the outlook,’ Cook said in a speech at the University of Pittsburgh.”
