Forbes warns of an imminent collapse in the market because of Trump economy

In the midst of an escalating economic tension, the American president returned Donald Trump I ignite the old dispute with the head of the federal reserve Jerome PowellAnd describing it in a post on the communication platforms as “one of the stupidity and most destructive people in the government.”

These statements came immediately after the federal announcement is installed Useful interest rates In the range of 4.25% to 4.5% since last December, despite Trump’s repeated calls to reduce it, on the pretext that the high interest “costs the United States billions.”

But Forbes believes that the real problem does not lie in tweets, but rather the possibility of submission Federal Reserve For political pressure. In the event that the interest is reduced early, the economy may face a wave Enlargement Again may be more severe than that followed Corona’s pandemic US To a vortex Recession Inflation that cost the markets a lot in the 1970s.

Major risks

Amid the escalating warnings, the Forbes report reviewed the most prominent indicators that warn the sliding of the American economy towards a crisis that may return to mind the most stagnant period in its modern history:

The sudden decrease in interest rates before controlling inflation may lead to a rapid rise in prices and the federal later force to raise interest more violently.
The Standard & Poor’s 500 index may collapse by 50%, as happened between 1972 and 1974, when the rampant inflation caused the collapse of markets.
Trump’s economic policies (customs duties, collective deportation, tax discounts) constitute what Forbes described as the “ideal storm” of inflation.
Budget American exceeded 6% of gross domestic productAnd the annual benefit of public debt exceeded a trillion dollars.
Loss of confidence in stability Monetary It may lead to a huge investment escape from the stocks to bonds and savings accounts.

Anxiety in the financial circles increased from a possible collapse in the value of the Standard & Poor’s index may exceed 50% (French)

Reusor the 1970s crisis?

The Forbes report believes that the current scene carries terrifying features from the experience of the seventies of the last century, when the federal delay caused inflation in a deep stagnation, which led to the collapse of the Standard & Poor’s 500 index by 50%. Now, with Trump’s insistence on applying a disturbing economic agenda that includes:

Fix Customs On imports, raising the prices of raw materials and cutting the supply.
Disburgical immigrants, which leads to a lack of cheap labor and high services prices.
Reducing comprehensive taxes that give consumers greater liquidity in an inflationary environment, which stimulates demand despite high prices.

All these measures – according to Forbes – will ignite prices again, and make it impossible for the federal to maintain the stability of the market without violent interventions.

The most dangerous scenario

Forbes estimates that the complete collapse of the Standard & Poor’s 500 index by 50% will lead to a loss of more than $ 23 trillion of stock value, a number exceeding 4 times the losses that were affected by the market in the first days of April 2025, which amounted to 5 trillion dollars.

Forbes notes:

The investors will demand higher returns on shares when they are Bonds Provides risk -free returns up to 6% or more.
Investors will give up shares and head to safe savings tools such as deposit certificates and short -term bonds.
Small companies, with weak liquidity, will be severely damaged as happened in the 2022 session, where Evideia’s share lost more than 50%.

epa12172638 US President Donald Trump during the Congressional picnic on the South Lawn of the White House in Washington, DC, USA, 12 June 2025. Senate Republicans seeking to put their mark on the House-passed tax-and-immigration package, are considering raising the state and local tax deduction cap to $30,000, lower than the House’s $40,000 plan. EPA-EFE/ALEXANDER DRAGO / POOL — The lack of clarity in the Trump administration strategy in facing the crisis increases the state of fluctuation and confusion in the (European) markets

Warnings from senior economists

Warnings are issued by prominent personalities in the world of money and economy on the risks of the American economy, and the most prominent of these warnings:

Jimmy Damon, CEO of JB Morgan Bank, said that “annual interest expenses have crossed the trillion dollar barrier,” warning that this constitutes a “clear sign of danger.”
The well -known investor Paul Todor Jones expected that “the dollar will lose 10% of its value this year”, which increases the pressure on the public markets and finances.
Lahh Trop, director of the governor at “Lord Abt”, expressed concern about the erosion of confidence in the monetary policy, noting that “investors are heading towards alternatives outside the dollar.”
Economist Trevis Tim wrote in Forbes warning: “If these policies continue the same, we are heading on a wave of stagnation similar to the seventies crisis, but its effects may be deeper and more painful.”

Does Trump change his path?

The Forbes report wonders: When crises intensify, will Trump reconsider his economic policies? Or continues his offensive approach and blame others?

The report indicates that the only glimmer Inflation The markets are hit, before it is too late.

Otherwise, the possible disaster may be faster than many expect, and with extended effects that affect not only the American economy, but the entire global markets.