Analysts at Bank of America Merrill Lynch (BAML), in the latest client note, evaluated the impact of a trade war on the US economic growth. Key Quotes: “Analyzed the impact of a trade war on the U.S. economy based on the Fed’s large-scale equilibrium macroeconomic model and said it showed “a notable drag on growth.” This suggests that the boost to growth expected from fiscal stimulus – e.g., tax cuts and greater federal government spending – will essentially be offset by the negative trade shock. Our calculations suggest that a major trade war would lead to a significant reduction in growth. A decline in confidence and supply chain disruptions could amplify the trade shock, leading to an outright recession.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next Oil on the rise as WTI bucks over $70 on supply concerns FX Street 3 years Analysts at Bank of America Merrill Lynch (BAML), in the latest client note, evaluated the impact of a trade war on the US economic growth. Key Quotes: "Analyzed the impact of a trade war on the U.S. economy based on the Fed's large-scale equilibrium macroeconomic model and said it showed "a notable drag on growth." This suggests that the boost to growth expected from fiscal stimulus - e.g., tax cuts and greater federal government spending - will essentially be offset by the negative trade shock. Our calculations suggest that a major trade war would lead to a significant reduction in… Top Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
