April 7, 2025: Economy Highlights
April 7, 2025: 11:00 p.m.:
April 7, 2025: Economy Highlights
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President Donald Trump threatened to impose an additional 50% tariff on Chinese goods starting April 9 if China does not withdraw its retaliatory tariffs, escalating trade tensions and raising concerns about increased consumer prices and global trade disruptions.
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JPMorgan Chase CEO Jamie Dimon, in his annual letter to shareholders, warned that the administration’s protectionist tariffs could damage vital U.S. economic alliances and potentially slow economic growth.
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Goldman Sachs increased the probability of a U.S. recession within the next 12 months to 45%, citing growing policy uncertainty and the impact of newly announced tariffs.
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The S&P 500 and Dow Jones Industrial Average closed lower after a volatile trading session, reflecting investor concerns over an economic slowdown and rising inflation due to escalating tariff disputes.
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Federal Reserve Chair Jerome Powell indicated that larger-than-expected tariffs are likely to boost inflation and slow growth, emphasizing the Fed’s determination to keep inflation expectations anchored.