Renowned economist Adam Posen has issued a serious warning about the escalating threat of a U.S. recession fueled by President Trump’s trade war tactics. Posen expressed concerns that the country could experience its most severe stagflation in decades, driven by long-term tariff effects that are expected to cause price hikes, accelerating inflation, and slowing economic growth. His prediction is that there’s a 65% chance of a U.S. recession occurring. He highlighted that the Federal Reserve, facing pressure from rising prices, may struggle to navigate this complex situation and could find itself forced to rapidly increase interest rates, adding further strain to an already fragile economy. Posen also pointed out that Trump’s trade policies have significantly heightened global uncertainty, prompting countries to take protective measures against U.S. actions. He believes it will take several years to repair the damage caused by these disruptions.