Trump's new tariffs are about to hammer American wallets — and Goldman Sachs says the US economy may not recover for years
Trump's trade war with China will hurt American wallets and damage real economic growth for years to come, according to Goldman Sachs.
- Trump's trade war is hammering US growth and is set to raise consumer prices, according to Goldman Sachs economists.
- "Last week we nudged down our growth forecasts for Q3, Q4, and 2020 Q1 by 0.1 percentage point, and now expect growth of 2.0%, 1.7%, and 2.2%, respectively."
- The bank also said that real GDP growth will continue to decline until the end of the year, and won't recover to pre-trade war levels till mid-2021.
"The most recent proposed tariff escalation would boost US consumer prices slightly further than previously estimated and would reduce US growth slightly further as well," economists at the bank including Andrew Tilton and Alec Phillips wrote in a report dated August 26.
The rise in consumer prices would be felt by ordinary Americans, as the price of goods would go up. The latest proposed tariffs due to kick in on September 1 will include items like apparel, footwear, electronics, and TVs.
Planned tariffs due to take effect in mid-December — the height of Christmas shopping season — will include cell phones, computers, and toys. Tariffs on European cars would add to price increases, the bank said.
If they're implemented, Goldman says: "The impact of a 5-percentage-point tariff step up (on all Chinese imports except the December 15th tranche) would boost core consumer prices by another 0.05% to 0.10% by mid-2020," said Phillips and Tilton.
"Our new baseline reflects a cumulative boost to consumer prices of just over 0.4%, and we see the impulse to core PCE inflation (Personal consumption expenditures) peaking at +0.3 percentage points in mid-2020," they added.
You are not allowing for the bs in YOUR numbers which have been totally rigged since the 80s.
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That is "having your face ripped off" by wall street.
Since it's my money, I would rather use real information, not the Bullshit fakenews stuff. I'd rather be a volunteer at the homeless shelter, not a client.
Yep, all of this 'prosperity' we are seeing today is bank rolled by borrowed money and you want to watch out for the 'shit hitting the fan' when all these loans get called!