U. S. recession expectations increase in 2023
2023.01.02 10:43
U. S. recession expectations increase in 2023
Budrigannews.com – The economy of the United States could suffer. According to the findings of a survey conducted by the Wall Street Journal, financial experts anticipate the nation’s economic downturn this year.
In 2023, a “shallow” or “mild” recession is predicted by over two-thirds of economists at 23 major financial institutions that do business with the Federal Reserve. Two of the institutions surveyed anticipate a recession in the upcoming year.
Big names in the financial services industry, such as Barclays, Bank of America, TD Securities, and UBS, were included in the study.
Because it raised interest rates to combat inflation, the Federal Reserve was blamed for the recession as a whole. The U.S. inflation rate is currently 7%, compared to the Fed’s desired target of 2% at this time.
Pandemic savings being spent, a decline in the housing market, and banks’ tighter lending standards are additional contributors to a possible recession.
Along with a general slowdown in the economy, the survey also found that many economists anticipate unemployment in the country rising to above 5% in November 2022 from 3.7%.
However, Credit Suisse, Goldman Sachs, HSBC, JPMorgan Chase, and Morgan Stanley all offered a more upbeat assessment of the situation, asserting that a recession will not occur in either 2023 or 2024.
Predictions for the upcoming years regarding the state of the U.S. economy and the global economy have generally not been very encouraging. Elon Musk, CEO of Tesla and Twitter, said in October that the global recession could last until the end of the year, which would be close to 2024.
These gloomy perspectives are caused by recurring global issues like widespread energy shortages and inflation.
Cryptocurrencies, particularly Bitcoin (BTC), have been discussed in public by decentralized finance experts as a means of preventing inflation.
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