US stock market undergoes wild swings after false rumour on Trump tariffs

“Recent rates will probably increase inflation and are making sure that many consider a greater probability of a recession,” wrote the CEO of JpMorgan Jamie Dimon, one of the most influential managers of Wall Street, in his annual letter to the shareholders on Monday. “If the rates menu causes or not, a recession remains in question, but it will slow down growth.”

Financial pain has once again hammered investments all over the world on Monday, the third consecutive day of steep losses after Trump announced the rates on his “day of liberation”. Hong Kong’s stocks collapsed by 13.2 percent for their worst day since 1997. An American American raw oil barrel fell below $ 600 during the morning for the first time since 2021, damaged by the concerns that a global economy weakened from commercial barriers burns less fuel. Bitcoin sank below $ 79,000, down from its record higher than $ US100,000 established in January, after keeping more stable than other markets last week.

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Trump rates are an attack on globalization that the world economy has redone, which has contributed to reducing prices for products on the shelves of US stores, but also caused the departure for other countries.

It also adds pressure on the Federal Reserve. Investors have become almost conditioned to expect the central bank to throw themselves as hero during the recessions. By reducing interest rates to simplify the loan for US families and companies, together with several non -traditional moves to squeeze the economy, the Fed helped the American economy to recover from the 2008 financial crisis, the collapse of Covid of 2020 and other bear markets.

But the Fed may have less freedom to act this time because the conditions are very different. For one, instead of a coronavirus or a system built for too much conviction that the prices of US houses continue to increase, this recession of the market is mainly due to the economic policy of the White House.

Perhaps even more important, inflation is also higher at the time than Fed would like. And although lower interest rates can be an economy, they can also exert a pressure upwards on inflation. Inflation expectations are already oscillating higher due to Trump rates, which would probably increase prices for anything imported.

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