Morgan Stanley: Global economy to head towards recession if US imposes 25% tariffs on remaining Chinese imports

Eren Sengezer FXStreet

According to Morgan Stanley, the global economy is likely to head to a recession if the U.S. and China fail to reach a trade deal and the U.S. decides to impose 25% tariffs on the remaining Chinese imports worth $300 billion, as reported by Reuters.

Morgan Stanley further argued that the Fed would cut rates back to zero by 2020 if that were to materialize and China would ramp up the fiscal stimulus by around $500 billion to 3.5% of its GDP.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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