Former Treasury Secretary's Stark Warning

Janet Yellen, the former US Treasury Secretary, has issued a stark warning about the potential economic fallout from President Donald Trump's latest trade tariffs. She predicts a "tremendously adverse" impact on American economic growth, citing the strain on businesses reliant on Chinese mineral imports and the heightened risk of a recession.

The Ripple Effect on US Economy

Yellen emphasized to the Financial Times that approximately 40% of American imports are crucial for domestic manufacturing. The tariffs, she argues, not only threaten consumer prices but also the global competitiveness of US firms. "I'm not yet ready to say that I’m forecasting a recession, but certainly the odds have gone way up," Yellen remarked, underscoring the growing concerns.

Recent Economic Indicators

This warning comes on the heels of alarming economic data, including the first contraction of the US GDP in nearly three years. Despite the temporary suspension of most tariffs for 90 days, the sustained 145% duties on Chinese imports continue to fuel market instability and economic uncertainty.