Almost 70% of US Economists Expect Recession in Six Months
By Ukraine In Hurricane
According to experts polled by the Financial Times, a decline in production and a slowdown in economic growth in the US will occur amid attempts by the Fed to slow down inflation, a record for 40 years. 40% said the National Bureau of Economic Research has declared a recession as early as the first quarter of next year. The bureau defines a recession as “a significant decline in economic activity that spreads across the economy and lasts for more than a few months”.
All experts agree that whatever efforts the US government makes to support the economy, inflation cannot return to 2% now – neither with higher interest rates nor with spending controls.
The US Federal Reserve is now trying to hold the economy in check by raising rates, but with this measure employers will reduce the number of vacancies, and this will lead to lower wage growth, economists believe. Increased influence on inflation, in their view, is caused by geopolitics, rising energy prices and prolonged disruptions in logistics.
