CEDAR HILLS, Utah — Analysts are warning that escalating trade tensions could lead to a full-blown trade war, potentially triggering a global recession characterized by two consecutive quarters of negative growth.
However, Gary Gygi, the founder of Gygi Capital Management, shared a different concern during an interview with FOX 13 News.
“Right now, I'm more worried about stagflation, which is essentially stagnant growth coupled with inflation,” Gygi said.
The economist noted that many are predicting if a recession occurs, it will likely be mild. Gygi believes that President Trump is working toward reindustrializing the United States, an initiative he considers a commendable aim.
“The goal is to energize the manufacturing sector,” Gygi stated. “If he's successful, wages will rise, leading to more high-paying jobs across the country. Long-term, this could have a positive impact.”
Gygi referenced remarks from Federal Reserve Chair Jerome Powell, who indicated that while short-term inflation might spike, projections for inflation remain low in the coming years.
Despite the uncertainty, Gygi advised against panic, emphasizing that sound personal financial planning principles remain unchanged. He expressed confidence that the markets have historically rebounded from downturns and believes that trend will continue.
