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Rising Recession Fears as Factories Slow and US-China Trade War Eases

Beijing, China
May 13, 2025 0 Negative I want money/finance advice
Rising Recession Fears as Factories Slow and US-China Trade War Eases
Economic warning signs are piling up across the US, with manufacturing showing a dip in new orders and a slowdown in hiring. While the recent tariff truce between Washington and Beijing has momentarily soothed trade tensions, experts worry about sluggish business investment and cautious consumer spending. Retailers report smaller inventories due to uncertain demand. Economists caution that a possible recession could trigger job losses and credit tightening, especially if production continues to stagnate. Still, lower tariffs may lower some import costs.
What this means for you:
If you’re worried about job security, begin building or expanding an emergency fund that can cover a few months’ expenses.
Monitor interest rates—if they dip again, consider refinancing high-interest debts.
In the meantime, diversify your income streams or upskill to remain valuable in a slower hiring market.

Key Entities

  • Federal Reserve: The central bank of the United States. It adjusts interest rates and oversees monetary policy to maintain stable prices and employment.
  • Treasury Secretary Scott Bessent: A senior US official overseeing economic policy. He helped negotiate the partial tariff rollback with China.

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