Larry Summers Warns The US Is Headed Toward Recession, Thanks to Tariffs

Former Treasury Secretary Lawrence Summers warned that the US is now likely headed toward a recession, with potentially 2 million Americans put out of work, thanks to the tariff increases now in train.
“It’s more likely than not that we’re going to have a recession — and in the context of a recession, we’ll see an extra 2 million people be unemployed,” Summers said on Bloomberg Television’s Wall Street Week with David Westin. “We’ll see losses in household income” of $5,000 per family or more, he said.
There will be “very important choices in the weeks ahead” with regard to tariff plans by President Donald Trump that exceed even those of 1930 that “made the depression great,” said Summers, a Harvard University professor and paid contributor to Bloomberg TV. It would be wise to be “backing off the policies that have been announced,” he said.
Financial markets are “speaking with incredible clarity” about the impact of the tariffs, Summers said — highlighting that stocks have been surging on any headlines suggesting relief, and plunging on news suggesting the levies will go ahead.
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