From Yahoo Finance: 2025-04-24 12:53:00

With President Donald Trump’s 90-day reciprocal tariff pause ending, market anxiety is on the rise as no agreements have been made between the U.S. and China yet. The markets are uncertain and investors are feeling the pressure.

The International Monetary Fund (IMF) has warned of heightened risks to global financial stability with the highest tariffs ever enacted and uncertainty surrounding policies promoting economic growth. The IMF Chief Economist noted that extended uncertainty could significantly slow global growth.

IMF’s latest World Economic Report shows increased global recession probabilities from 17% to 30% since October. Market stress has not yet been evident, but global growth outlook has been reduced for 2025 and 2026.

IMF anticipates borrowing costs in the U.S. will remain high this year but slowly decline next year, indicating a belief that inflation will ease. The Federal Reserve may lower interest rates in response.

Countries are urged by the IMF to promote a stable trade environment and international cooperation while addressing policy gaps and structural imbalances at home for economic stability. Markets are already reflecting this with falling dollar values and pressure on stocks and bonds.

As the global crypto market sits at $2.93 trillion, up by 0.27% on April 24, investors may turn to crypto as a hedge against traditional market instability driven by macroeconomic pressures.

Read more: Markets grow nervous as Trump’s 90-day tariff pause hits day 15