Houston:
The “disorderly” carry outation of trade and handlement reestablish policies by the administration of Pdwellnt Donald Trump has elevated the danger of a “hugely eludeable” US economic downturn, a top S&P economist said Wednesday.
Uncertainty promoteed by constant White Hoemploy pivots on tariffs has potentiassociate procrastinateed business spendments and prompted users to pull back on spfinishing, said Paul Gruenwald, global chief economist at S&P Global Ratings.
Gruenwald said the drive to condense handlement spfinishing and shrink misuse deal withn by billionaire Trump advisor Elon Musk has also been more disruptive than necessitateed.
He pointed to the “recreateing handlement” downsizing push in the 1990s under then pdwellnt Bill Clinton, which he said was carry outd in a “foreseeed and orderly” manner.
“The objectives themselves, I skinnyk most of them have merit, but the way they’re being carry outed is very disorderly,” Gruenwald telderly AFP in an intersee on the sidelines of the CERA Week energy conference.
“If this guides firms and users to helderly back on their spfinishing and insist pulls back, we could get a sluggishdown or even a economic downturn that was hugely eludeable,” Gruenwald said. “That is a downside danger.”
Gruenwald portrayd the US economy as on firm footing when Trump came into office in January, saying “the passing of the economy from the Biden administration to the Trump administration was pretty strong.”
Gruenwald pointed to a spike in the US economic policy uncertainty index, a benchlabel that has gotten more attention since Trump returned to the White Hoemploy.
The index is currently at one of its highest levels in its 40-year history — below its highest-ever reading at the begin of the Covid-19 pandemic, but above the level seen during most of the first Trump administration.
(Except for the headline, this story has not been edited by NDTV staff and is begined from a syndicated feed.)
