Why This US Economic Slowdown Could Hit Harder

From Investing.com: 2025-04-29 02:28:00

In a departure from past economic downturns, the US is facing high bond yields and a weakening dollar, leading to tighter credit and sticky inflation. With traditional economic shock absorbers missing, the impact of the slowdown may be more painful for households and businesses. (Source: FT)

The IMF has revised global growth forecasts for 2025 and 2026 due to escalating trade tensions and soaring US tariffs. Inflation is now expected to fall more slowly, with significant downward revisions for advanced economies. The report reflects a rapidly changing global situation. (Source: FT, TRT World)

After a period of tit-for-tat tariffs between China and the US, President Trump indicated a more cautious approach, stating that tariffs on Chinese goods will not reach the previously threatened 145%. Global trade dynamics may shift, with Chinese exports to the US expected to decrease while exports to other regions rise. (Source: Statista, WTO)

Despite the average 11% annual return of the stock market since 1950, volatility is common with an average intra-year drawdown of 14%. The key lesson is that volatility does not equate to a permanent financial loss unless you sell. (Source: Peter Mallouk)



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