0401 GMT - Broad-based tariffs, if kept in place for a sufficient period, have the potential to tip the U.S. economy into a recession, says Benoit Anne, senior managing director at MFS Investment Management's strategy and insights group. While the U.S. consumer had been healthy, the tariff shock, which essentially acts as a tax on consumption, could significantly curtail domestic demand, he writes in a note. Business sentiment is likely to deteriorate, and patience will be needed to assess the macro risks, as the potential shock to private consumption will materialize with a lag of several months, Anne adds. (tracy.qu@wsj.com)
(END) Dow Jones Newswires
April 08, 2025 00:01 ET (04:01 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
Comments