World-renowned economist Nouriel Roubini, who is famous for accurately predicting the 2007 financial crisis, unexpectedly expressed optimism after Donald Trump’s decision to suspend for 90 days most of the new tariffs he announced just a week ago. Bloomberg reports.
In a post on the X platform, Roubini wrote that his base case scenario never foresaw a recession in the US or globally, despite the panic that gripped financial markets after “America’s Day of Liberation” when Trump announced aggressive tariff policies.
“Market discipline, the Fed’s stance, sober advisers in the White House, and a weak majority in Congress are the mechanisms that can keep Trump from unleashing economic chaos,” Roubini said, recalling his December analytical text after Trump’s re-election.
Bloomberg analysts believe that the markets forced Trump to reconsider his plans after the fall in stocks began to infect the government bond market, causing a massive sell-off in US Treasuries.
After yesterday’s announcement of the suspension of tariffs (except for China’s, which was raised to 125%), global markets rose sharply. Trillions of dollars worth of assets began to recover after several days of deep losses.
“The bond, credit and equity markets have once again proved that they are the strongest forces in the world,” Roubini concluded.
