Interest Rate Cuts: Major Banks Warn of Market Impact
Interest rate cuts are now expected in the near future as both JP Morgan and Goldman Sachs have raised some serious recession warnings while the market volatility is growing steadily. The Trump administration’s recently imposed some tariffs that have certainly triggered some widespread economic concerns, with several major banks quickly revising their forecasts upward as the fears of a potential trade war continue to grow and intensify. Also Read: China’s Central Bank Asks State-owned Banks to Reduce US Dollar Purchases How Big Banks’ Recession Warnings Can Rewrite Market Actions JP Morgan just raised its recession chance to 60%, up from 40%, while Goldman Sachs bumped its forecast from 35% to 45%. These rather dramatic shifts came shortly after Trump’s implementation of blanket 10% tariffs on many U.S. trading partners, which has certainly shaken financial markets. Source: jpmorganchase.com JP Morgan CEO Jamie Dimon wrote in a letter to shareholders: “The econom...