Moody's analyst: Trump risks recession with each day he fails to resolve trade wars
President Donald Trump. (AFP/File / Brendan Smialowski)

On Wednesday, the Dow Jones Industrial Average fell by 800 points, its worst day of 2019.


Although President Trump continues to tout a strong economy, analysts have concerns that his trade wars with China might cause a major recession.

On CNN Thursday, Moody's analyst Mark Zandi explained that with each passing day, Trump risks having the economy slump into a recession he won't be able to fix.

"Yeah, sure, the president could tweet that he had a call with president Xi of China and they came to some kind of arrangement and they're going to wind down the trade war," he said. "I don't think it will be a substantive agreement, nothing that will change the grievances that we have with China but it will be a face-saving arrangement and I think that will be enough to quell the uncertainty and keep the economy moving forward," he added.

"But having said that, to your metaphor, I think with each passing day that the president doesn't send out that tweet, the more likely he's not going to be able to turn this thing around and the recession will take on its own dynamic and no matter what he does, he won't be able to turn it around."

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