Things aren’t looking great for the economy, thanks to the rapid inflation and soaring gas prices across the nation.
It seems that the costs of everything are getting more expensive with no end in sight and loans are getting more pricey due to the Federal Reserve raising the rates of interest.
The Biden administration is also pushing back against U.S. energy production amid the ongoing war in Europe.
The Biden Recession is coming. @Trish_Regan joins #AMERICAFirst on https://t.co/a3fWpsedgl pic.twitter.com/H9QQHoCKvi
— Sebastian Gorka DrG (@SebGorka) April 7, 2022
With all of that combined, economic experts are fearing that America could enter a recession during the fourth quarter of 2023 and into 2024.
“We no longer see the Fed achieving a soft landing,” Deutsche Bank economists told Fox News. “Instead, we anticipate that a more aggressive tightening of monetary policy will push the economy into a recession.”
This comes after the Labor Department’s Bureau of Labor Statistics recently reported a 7.9 percent increase in the consumer price index over the past year, a 40-year high inflation increase.
To combat this, the Fed has raised rates by 0.25 percent or 25 basis points. It raised the benchmark interest rate target to a range of 0.25 percent to 0.50 percent, making it the first time since 2018.
“Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher energy prices, and broader price pressures,” said the Federal Open Market Committee, explaining that the reason for the raise is inflation.
Fed Chair Jerome Powell pushed back against the concern that further tightening by the central bank will trigger a recession.
“The probability of a recession in the next year is not particularly elevated. All signs [are that] this is a strong economy and one that will be able to flourish in the face of less accommodative monetary policy,” said Powell in a statement.
Americans have been suffering from financial strain lately due to rising inflation and the cost of living, and recent BLS data revealed that the average hourly earnings fell by 0.8% in February and decreased by 2.6% over the past year.
A recent report by LendingClub also found that 64% of Americans have been living paycheck to paycheck since the beginning of 2022.
