Kyle Bass said the US may need to undergo a recession as it reorders its global trade ties and attempts to rein in the federal deficit. 
”We have to make some difficult choices,” the Dallas-based investor said in an interview on Bloomberg Television. “Both of those things might be slightly recessionary, and if that’s true, we might have to go to a brief recession in order to rebuild our foundation.”
President Donald Trump’s moves to drastically increase trade levies sent equity valuations plunging and US yields soaring before Trump put in a 90-day pause. There still remain increased duties on major trading partners while the administration has ratcheted up the US tariff on goods from China to at least 145% — a result of a 125% rate that includes “reciprocal” duties and a 20% rate imposed by Trump earlier this year over fentanyl trafficking.

Kyle Bass said the US may need to undergo a recession as it reorders its global trade ties and attempts to rein in the federal deficit.&nbsp; &rdquo;We have to make some difficult choices,&rdquo; the Dallas-based investor said in an interview on Bloomberg Television. &ldquo;Both of those things might be slightly recessionary, and if that&rsquo;s true, we might have to go to a brief recession in order to rebuild our foundation.&rdquo; President Donald Trump&rsquo;s moves to drastically increase trade levies sent equity valuations plunging and US yields soaring before Trump put in a 90-day pause. There still remain increased duties on major trading partners while the administration has ratcheted up the US tariff on goods from China to at least 145% &mdash; a result of a 125% rate that includes &ldquo;reciprocal&rdquo; duties and a 20% rate imposed by Trump earlier this year over fentanyl trafficking.

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Kyle Bass Talks Tariffs and US Recession Odds

https://api.omny.fm/orgs/e73c998e-6e60-432f-8610-ae210140c5b1/clips/29549f70-7bfe-4774-a746-b2bc008ebcb0/transcript

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