US economic experts: Sino-US economic and trade friction may cause the US economy to fall into recession
At present, many US economic experts worry that the US-China economic and trade frictions provoked by the United States and its current tariff policy may cause the US economy to fall into recession, and the negative effects of the US manufacturing and industrial recession will continue to spread to other areas. The US economy has been hit hard by trade wars.
Chinese media CCTV.com reported on August 25 that Poseidon, the chief economist of the National Commercial Bank of Pittsburgh, said that he is now more worried about the growth of the US economy than ever before. The escalating Sino-US economic and trade friction “may become a crush. The last straw in the United States.”
On the 14th of this month, the 10-year bond yield of the US bond market was lower than the 2-year bond yield for the first time since 2007. The last time this happened was the 2007 US subprime mortgage crisis, which subsequently evolved into The 2008 international financial crisis swept the world. Morgan Stanley’s economic experts say that the US economy is likely to continue to slow down and fall into recession in 2020, and the performance of the bond market is a warning.
Although the US government has repeatedly stated that the US economy “has performed well,” the reality is not the case. In the first half of 2019, US industrial output and manufacturing output fell for two consecutive quarters, and it has fallen into a “technical recession.” Some economists have analyzed that manufacturing problems may spread to other areas. In addition, layoffs and pay cuts triggered by manufacturing and industrial sluggishness may reduce consumer spending.