Recent economic indicators suggest a potential recession is looming, driven by President Donald Trump’s tariffs on Canada, China, and Mexico, alongside retaliatory measures. The Federal Reserve Bank of Atlanta’s GDPNow model estimates a sharp decline of 2.8% in annualized growth for the current quarter, contrasting with a 2.3% increase last week. Other troubling signs include a 7.0-point drop in the Consumer Confidence Index in February, a decline in U.S. retail sales exceeding expectations, and slowing job growth in January. Major companies like Walmart, Target, and Best Buy have expressed concerns about the impact of tariffs on consumer spending and corporate profits. Additionally, U.S. bankruptcies have reached their highest levels in 14 years, while community banks face a 12-year high in delinquencies due to multifamily mortgage exposure. Financial markets are reacting negatively, with the U.S. dollar falling to a three-month low against major currencies and stock indices like the Dow Jones Industrial Average and S&P 500 experiencing significant declines. Investors are selling off assets amid fears of an economic slowdown and potential interest rate cuts by the Federal Reserve. — news from Forbes
