Former Treasury Secretary, Lawrence Samarz, warned that the United States is now probably heading towards stagnation, as two million Americans come out of work, thanks to an increase in the tariff on the train.
“We may have a recession – and in the context of the recession, we will see two million additional people unemployed,” Samarz said on Bloomberg TV. Wall Street Week With David Westin. He said, “We will see losses in family income,” at a value of $ 5,000 for each or more family.
“There are” very important options in the coming weeks “regarding the customs tariff plans that exceed until 1930” that made depression great. He said it would be wise to “retreat from the policies announced.”
Samarz said that the financial markets “speak incredible” about the impact of definitions – with highlighting that the shares were rising on any headlines that indicate relief, and violate the news that the fees will light up.
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“It is very likely that, in the context of the recession, we will see the markets reaching much lower levels than their current level,” said Samarz. He said: “I will be surprised if the bottom is at this stage and the markets.”
He pointed out that the American economic shrinkage will have many other negative effects, including a broader budget deficit. “There will be financial distress that will affect high -risk companies as well as high -risk countries in the global economy.”
The market “warning”
Although it is “difficult to know” the risk of a transformation into a financial crisis, the former head of the Treasury Ministry has highlighted the tightening of the regulations since the 2007-2009 collapse, which was directed to ensure the well-being of financial companies well and that the so-called plumbing in the system was functional. “Liquidity continues to flow” and there was no “obstacle” despite market fluctuations.
“I am more concerned about the internal safety of the markets than the external message that the markets send – which I think is one of the alarm,” said Samarz. In the absence of some executives of companies and academic leaders who talk about their concerns about political procedures, the markets are “an important reference to the place of things.”
For the first time, the United States faces a recession resulting from its political measures. He said: “There is nothing in the outside world causing this challenge. It is caused by the words and actions of President Trump and his administration.” “I don’t know that there is already a historical precedent for what is going on now.”
“There will be a great appeal of normal life,” he said if the government is retreating from “policy errors.”
Student “B”
“There is nothing complicated about this,” Sames also said. “The preliminary economy” is the imposition of a significant tax increase on the middle class, cloudy with certainty, destroying companies and forcing the economy down. “Any student” B “will know that the answer to this is that it is the shock of the offer that raises prices and provokes unemployment.”
Samarz said it would be “very expensive for the United States and the global economy” if Washington returns tariffs to pre -World War II levels. “The losses of markets, if all this is sure to implement, will be more than one trillion dollars. The stock market measures a very small part of the economy’s losses of policies of this kind.”
This story was originally shown on Fortune.com
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2025-04-08 20:46:00
