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Trump policies 'promise' an economic downturn, says prominent forecaster in first-ever 'recession watch'

1. UCLA Anderson issued first 'recession watch' citing policy changes under Trump. 2. Economic contraction possible due to tariffs and reduced federal workforce. 3. 36% recession probability for next year, rising from 23% last month. 4. Admin policies may disrupt economic sectors, causing labor shortages. 5. Financial sector risks could amplify downturn; stagflation concerns grow.

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FAQ

Why Bearish?

The potential for recession may negatively affect investor sentiment and spending, historically leading to downturns in market indices like the S&P 500.

How important is it?

Economic forecasts greatly influence market behavior, especially in anticipation of downturns affecting major indices like the S&P 500.

Why Short Term?

Concerns of an upcoming recession can lead to immediate market reactions, similar to past events like the 2020 pandemic.

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