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Ever since Donald Trump has implemented the reciperook tariff policy, many big economists have said that this step is not right for America. Now the talk of these economists has been further emphasized by a survey on American citizens. It has been told in this survey that American citizens have become pessimistic about the US economy. Let us tell you what things came out in this survey.
What were the revelations in the survey?
According to a report published on the website of American news channel CNN, the latest survey of the University of Michigan has revealed that American citizens have become very pessimistic about the economy these days. This month, Consumer Confidence Index has recorded a decline of 11 per cent, which is the second lowest level since 1952. Surprisingly, even during the 2008 financial crisis, people’s morale did not fall so much.
Tariff war became the main reason
President Donald Trump’s tariff policy remains the main cause of this pessimism. The ongoing tariff war with China has created a possibility of increasing inflation. Although the tariffs imposed on other countries have been stopped for 90 days, the concerns of common Americans have not come down. People of every age group, income group and political ideology involved in the survey have expressed concern about the economic future.
Crisis on consumer spending
70 percent of the US economy depends on consumer expenses. Experts are worried that if people reduce spending then the risk of recession may increase further. Federal Reserve Chairman Jerome Powell says that Americans have been spending till now despite inflation, but if employment opportunities start decreasing then the situation can worsen.
Experts are also giving warnings
Blackrock CEO Larry Fink while speaking to CNN warned that the uncertainty created by Trump’s tariff policy could create a 2008 financial crisis. The same, JP Morgan CEO Jamie Dimon has also described tariffs and trade war as a big threat to the economy. In the last few years, the expenses of rich Americans have supported the economy, but now their purchasing capacity can also be affected due to the decline in the stock market.
Increasing concerns about inflation
The biggest concern for the Federal Reserve is that American citizens have started feeling that inflation will remain for a long time. According to the survey, the inflation rate is expected to be 6.7 percent in the next one year, which is much higher than the 5 per cent of the March figure. If this perception becomes, then it will be even more difficult for the Fed to control inflation.
India can also be affected
The effect of recession in the US economy can be seen globally. Emerging economies like India may face a decline in export and decrease in foreign investment. However, some experts believe that India may be able to face this crisis on the strength of its strong domestic market.
(Tagstotranslate) Us economy
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