US Economy: Economic Armageddon Reveals ‘Trumpcession’
US President Donald Trump with UK PM Keir Starmer (Image credit X.com)
Trump Tariff Sends US Economy Down on Gloomy Path
By S Jha
New Delhi, March 4: The Federal Reserve Atlanta in forecast for the economy is predicting a major crash. The FED Atlanta is pegging a three per cent plunge in the GDP growth.
The economic commentators are coining new terms to describe trends in the US economy. The crash in the US stock market has also sent shock waves. US President Donald Trump with his tariff measures is unveiling an America alone policy, said analysts.
“US economy forecast to plunge almost 3% in first quarter. This together with rising inflation. Economic Armageddon!” commented Bruno Maçães in a post on X.
The FED Atlanta in an update said that the “the GDPNow model estimate for real GDP growth (seasonally adjusted annual rate) in the first quarter of 2025 is -2.8 per cent on March 3, down from -1.5 per cent on February 28”.
“After this morning’s releases from the US Census Bureau and the Institute for Supply Management, the nowcast of first-quarter real personal consumption expenditures growth and real private fixed investment growth fell from 1.3 per cent and 3.5 per cent, respectively, to 0.0 per cent and 0.1 per cent,” added the Fed Atlanta in its update.
Trade War Begins: Trump’s Tariff Riles Canada, Mexico & China
Reuters in a report coined the term ‘Trumpcession’ to describe the US economy going under the spell of the trade war unleashed by President Donald Trump. “Trumpcession ! If you haven’t heard the term before, you will now,” said Reuters in a report, adding that “a closely watched real-time US economic weathervane is signaling that GDP is shrinking at the fastest pace since the pandemic lockdown”.
The 25 per cent tariffs against Mexico and Canada are coming in force. The economists warned that the US will face a sharp spike in inflation. Trump has also announced 25 per cent tariffs for imports from the European Union. Besides, he has also announced reciprocal tariff for all the trading partners without exception.
The private consumption data and projections by the likes of Walmart and Citibank are also pointing to gloom in near future. The consumer sentiments have slipped to their lows, said reports.
Trump will be addressing the Congress where Democrats are inviting the fired Federal workers. In the spree to cut the government spendings, analysts warned that the US could fast-forward to severe economic crisis in the near future.
The US bourses tanked on Monday. Dow Jones led the crash in the US stock market. An all-round rout in the equity market is ringing the alarm bells of a near-term recession in the US.
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