Experts Warn Of An Upcoming Recession In The United States

Matt Lillywhite

Several economic experts have recently warned that a recession in the United States is possible. For example, Deutsche Bank believes the U.S. economy will fall into a recession due to the Federal Reserve raising interest rates. Quoting a memo that the bank sent to clients:

"The U.S. Economy is expected to take a major hit from the extra Fed tightening by late next year and early 2024. We see two negative quarters of growth and a more than 1.5 percent point rise in the U.S. unemployment rate, developments that clearly qualify as a recession, albeit a moderate one."

Sadly, Deutsche Bank isn't the only financial institution worried about an upcoming recession. Goldman Sachs recently expressed concern about the crisis in Ukraine shocking the global economy and plunging the U.S. and Europe into recession. “We think the probability of a recession has increased in 2023.”

According to Forbes, "A recession is a significant decline in economic activity that lasts for months or even years. Experts declare a recession when a nation’s economy experiences negative gross domestic product (GDP), rising levels of unemployment, falling retail sales, and contracting measures of income and manufacturing for an extended period of time." So, if the United States experiences a recession during the next 18-24 months, job losses could result in more people being unemployed and businesses going bankrupt due to declining sales.

A recession would impact millions of American families. It'll be hard to get a mortgage if you don't have an excellent credit score, as banks will tighten credit conditions. Quoting an article published by Investopedia: "Throughout the recession, standards for lending in the market tend to be tighter, and lenders are more selective of the risks they are willing to take on at any interest rate.

It's also worth noting that it'll be difficult to find a job during a recession because of high unemployment. As a result, there will probably be more competition for each available position.

Are you concerned about a recession in the United States? Let me know your thoughts in the comments section. And if you think more people should read this article, share it on social media.

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