Comment on Trade Wars

Every U.S. recession since World War II was preceded by the Federal Reserve raising interest rates too far, too fast, from much higher levels than those of today.  The Great Recession of 2007-09 was also caused by too much debt in the housing sector.

However, we have not had a trade war since the 1930’s that contributed to the Great Depression. The trade war today could lead to a major U.S. recession in the near future.