Donald Trump’s economic policies have been creating chaos in the economy. While JP Morgan had earlier predicted a recession, the chances of it are said to be increasing. The IMF (International Monetary Fund) has warned of heightened global financial stability risks in its latest system overview, calling on regulators to stay vigilant for possible crises.
The IMF highlighted a “sharp repricing of risk assets” triggered by the US president’s tariff announcements since February, notably the April 2 “liberation day” statement, and cautioned that further disruptions could follow.
The IMF cautioned about a growing connection between nonbank lenders and traditional banks, urging regulators to mandate greater transparency to pinpoint and curb institutions engaging in reckless risk-taking and weak governance.
Are we walking towards a recession? Drop your thoughts in the comments.
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Source: The Guardian