Google searches for the word ‘recession’ have spiked 244% this month as worries about the financial future looms. The recent stock market crash sent shockwaves indicating that if a recession hits, the economy could fall 10 times worse. Leading investment bank JP Morgan remains cautious and published a new finding claiming that a recession probability is currently high. JP Morgan’s report comes at a time when BRICS is looking to bring the US dollar down from the world’s reserve and its best chance is through a recession.
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Read here to know how many sectors in the US will be affected if BRICS ditches the dollar for trade. Since BRICS countries are diversifying their reserves by cutting ties with the US dollar, a recession might not affect their economies. That leaves the US economy in danger as developing countries will look to outperform America if it reels under recession, according to JP Morgan. Therefore, the next few months will decide the prospects of the American economy.
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BRICS: There’s a 35% Chance of a Recession in the US, Warns JP Morgan
JP Morgan raised its recession probability from 25% early this year to 35% in August. That’s an increase of 10% indicating that the US economy has higher chances of being hit by a recession. The move equips BRICS to further their de-dollarization agenda and be prepared to safeguard their finances, as per JP Morgan.
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“This modest increase in our assessment of recession risk contrasts with a more substantial reassessment we are making to the interest rate outlook; JPMorgan now sees just a 35% chance of the Federal Reserve and its peers keeping interest rates “high-for-long,” wrote the leading investment bank with economists, headed by Bruce Kasman. BRICS is awaiting a US recession to dampen the US dollar and put local currencies ahead for trade.