Here’s Undeniable Proof That Another Great Recession Is On The Horizon
(TargetLiberty.org) – Ordinary Americans are already struggling with soaring gas prices and serious inflation on everything else. Now economists are saying there’s no good news on the way. Wall Street now thinks the US economy could be heading for a full-blown recession in the next year.
Bank of America Research strategists have ratcheted up the odds of an economic downturn to 40% in 2023, with gross domestic product the broadest measure of goods and services produced in a nation slowing to almost zero by the second half of next year. https://t.co/gsjDoXMqPT
— Maria Bonanno (@MariaBonanno9) June 20, 2022
Warnings of a possible recession have been circulating for a few weeks, but financial experts believe the risk is now serious. Researchers at the Bank of America have raised the odds of a recession in 2023 to 40% — and they’re blaming the Federal Reserve for the looming crisis. According to leading analyst Ethan Harris, his team warned as early as Spring 2021, that the Fed’s reluctance to raise interest rates was risking a “boom and bust” economic cycle, where cheap credit causes an explosion of spending which then leads to inflation and recession.
Thanks to the trillions of stimulus money pumped into the economy by the Biden administration, inflation is already hitting us hard. The Federal Reserve fueled the surge by leaving interest rates at a historic low, so anyone who’d spent all their stimulus money could borrow more cheaply. Now, the Fed is starting to panic; last week, it raised interest rates by 75 basis points (0.75%), the largest increase since 1994, and another increase that size could be pushed through in July. If interest rates rise too fast, it slows economic activity — and if it slows enough, it could cause a recession. Some economists believe it could still be avoided, but even Fed Chairman Jerome Powell admits the chances of a soft landing are fading.
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