Economics
Wall Street Warns of Mounting Recession Risk From Trade War
- Morgan Stanley chief economist says markets not fully prepared
- Goldman revises trade war assumptions, reduces GDP forecast
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Wall Street’s biggest banks lined up to warn investors of growing recession risks from the escalating trade war between the U.S. and China.
A global recession could start within nine months if President Donald Trump imposes 25% tariffs on an additional $300 billion of Chinese exports and Beijing retaliates, according to Morgan Stanley. Separately, JPMorgan Chase & Co. said the probability of a U.S. recession in the second half of this year had risen to 40% from 25% a month ago.