Economic experts are warning another recession may be on the horizon.
Republicans on House Ways and Means have repeatedly bashed President Joe Biden’s economic policy missteps, and now they are pointing to experts who are raising the alarm as well.
“With inflation at a 40-year high, economists are sounding the alarm that the U.S. is heading for a recession,” the lawmakers said. “Despite President Biden’s past claims that inflation is ‘transitory,’ an ‘upper class problem,’ and something that could simply be solved if businesses charged customers less, price increases continue to hammer working families. The Federal Reserve is now forced to fix Bidenflation by raising interest rates — another cost for working families who must borrow for mortgages, auto financing, and student loans – which could set the stage for a recession.”
Inflation is a main reason for the concern.
“The Fed has never really chased inflation successfully without having precipitated a recession, yeah,” said Chief Economist at Grant Thornton LLP Diane Swonk.
The word “recession” is being tossed around by more than a few.
“‘Overall, the economic outlook is unusually murky […] While there are many reasons to be optimistic about the U.S. economy’s near-term prospects, there are also reasons to worry that a recession isn’t far off,’:” said economist Ryan Sweet of Moody’s Analytics. “Reasons for worry include ongoing supply-chain disruptions, rising interest rates and purchasing challenges at big companies. ‘The odds of something going wrong are high,’ he concluded.”
Even a former Democratic administration official is raising concerns.
“Ex-Treasury Secretary Lawrence Summers, meanwhile, put the chances of a near-term recession—within the next 30 months—at above 50% because ‘the Fed has allowed itself to get far further behind the curve’ in battling inflation,” said Larry Summers, former Treasury Secretary under the Obama administration.
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