Wall Street Banks Say Markets Are Flashing Rising Recession Risk
Financial markets are signaling that the risk of a recession is growing as tariff-related uncertainty and indicators of economic weakness spread fear across Wall Street. The market-implied probability of an economic downturn has climbed to 31% on Tuesday, from 17% at the end of November, according to a model from JPMorgan Chase & Co. Economic sentiment is darkening as money managers and corporate executives struggle to cope with the volatility created by President Donald Trump's threatened tariffs.
- The growing consensus among Wall Street experts about an increased risk of recession highlights the increasingly uncertain economic landscape, where traditional indicators are struggling to keep pace with changing market conditions.
- How will policymakers respond to the rising recessionary sentiment, and what specific policy interventions might be required to mitigate its potential impact on the economy?