More Bad News For The Economy As Recession Fears Grow

Matt Lillywhite

Some economists are concerned about a recession in the United States. According to The New York Times, "demand — for cars, for homes, for restaurant meals and for the workers to provide them — has outstripped supply, leading to the fastest inflation in 40 years. Policymakers at the Federal Reserve argue they can cool off the economy and bring down inflation without driving up unemployment and causing a recession. But many economists are skeptical that the Fed can engineer such a soft landing, especially in a moment of such extreme global uncertainty."

Bank of America analyst recently warned that the U.S. economy is deteriorating quickly. Deutsche Bank has forecasted a recession in 2023 due to spiraling inflation and interest rate hikes from the Federal Reserve. Meanwhile, Goldman Sachs sees the chances of a recession at 35% in the next two years, according to Bloomberg.

Other financial experts are getting increasingly nervous about the possibility of a recession in the United States. Economists surveyed by The Wall Street Journal believe there's a 28% chance of a recession in the next 12 months. For context, that's up from 13% a year ago. Sadly, it's not just financial experts and economists that are concerned about a recession. According to a CNBC poll, "81% of adults said they think the U.S. economy is likely to experience a recession in 2022." 

If inflation continues to rise, consumers may cut down on their spending. It's also worth mentioning that the Federal Reserve will probably keep raising interest rates, which could negatively impact several aspects of the economy.

Are you concerned about a recession in the United States? Leave a comment with your thoughts. And if you think more people should read this article, share it on social media.

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Matt Lillywhite covers politics, the economy, and kitchen-table issues that matter.


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