ECONOMISTS have warned of recession risks for the US economy amid rising government debts, a dim growth prospect and weak consumer sentiment.
JPMorgan’s chief US economist Michael Feroli said, “We believe recession risks are still elevated, but now below 50 per cent,” down from a previous estimate of 60 per cent on US sweeping tariff measures announced in early April.
JPMorgan Chase CEO Jamie Dimon said he wouldn’t take the risk of recession “off the table.”
“Hopefully we’ll avoid it, but I wouldn’t take it off the table at this point,” he said in an interview with Bloomberg last week. “If there is a recession, I don’t know how big it would be or how long it would last.”
US billionaire investor Steve Cohen said at an investment conference in New York on Wednesday that “We aren’t in a recession yet, but we have significant slowing growth,” adding the chance of a US recession now stands at about 45 per cent.
Moody’s on Friday stripped the United States’ top-notch ratings, citing rising government debt and interest payments. “Successive US administrations and Congress have failed to agree on measures to reverse the trend of large annual fiscal deficits and growing interest costs,” it said.
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