Steve Forbes Forbes Media joins “Big Money Show” to talk about the international consequences of increasing trade tensions between the United States and China.
Economic uncertainty created by the President Donald Trump The US business partners' tariffs raise concern that if the situation continues, the economy can face a recession.
Stagflation is a term that is generally described to describe the scenario in which Economic growth It is stagnant, while also experiencing high inflation, increasing consumer prices and helping potentially in the labor market and ultimately higher unemployment.
Tariffs are the tax on imported goods paid by importers who typically pay some or all the higher costs they pay through higher prices are the dynamics that has raised concerns about inflation revitalization. Consumer inflation expectations in recent months in Federal Reserve polls have increased to many consumer goods before rising prices.
Recent economic data has been added to concern about the possible start of the recession. Data released by the Bureau of Commerce last week showed that the US GDP (GDP) was concluded at an annual rate of 0.3 % in the first quarter of 2025. This was the first three -month contraction in the US economy since the first quarter of 2022.
The US economy slowly slows and decreases 0.3 % in the first trimester because tariffs weigh
The uncertainty and economic displacement caused by tariffs can lead to a downturn in the US economy. (Spencer Platt/Getty Images)
“Even if today's poor GDP may be a partially reflected companies and are trying to promote tariffs, it was still a warning on the economy,” said Ellen Zennner, a senior economic strategist for managing Morgan Stanley's wealth management last Wednesday.
David Behnsen, chief executive and chief investment manager of the Bahnssen Group's Wealth Management Company, told Fox Business that he told Fox Business that The pedestrian environment It seems that the central bank will be a challenge for the Federal Reserve to balance its dual task in boosting sustainable prices and maximum employment.
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This stagification creates a challenge for the Federal Reserve and the head of Jerome Powell because the central bank balances its dual task. (Alex Wong/Getty Pictures)
“There's almost nothing Central Bank It can do about Stagliing because, in this case, the reason for the higher price is not money, “Behnsen explained:” This is not because it pursues a lot of money and pursues a lot of goods, because because of different policies and new prices, there is a high pressure at prices that are quite higher than the bank. “
Behnsen went on to say that while the Trump administration would push a large part of its tariffs at times, it allows for unpleasant prices to rise, uncertainty about the duration and amount of tariff policy can cause. Economic slow While jobs are waiting for greater clarity.
“I do not believe that the price increase will be permanent, more because I think the Trump administration intends to make a big walk in most of the tariffs they have threatened,” he said. “I believe that the issue is a much bigger stagnation, what is the slowdown in economic growth because of policies?”
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“This is my biggest concern, but I really can't respond to it,” said Behnsen. “The greatness of the economic impact and the duration of the economic impact is all directly in this uncertainty, and we do not currently have transparency.”