Many months ago, the Federal Reserve began moving up interest rates that Americans pay. The central bank’s rationale for doing this cited the lessening of inflation.
Unfortunately, though, these upticks in interest rates haven’t led to the reduction of inflation. Back in May, inflation actually increased, only furthering the burdens faced by the American public.
Meanwhile, economists have issued dire warnings about what the Federal Reserve is doing. The message here is that while increasing interest rates may not reduce inflation, it could very well push the United States into a recession.
Now, Newsmax reports a notable rise in the likelihood of America facing a recession.
Reviewing the Odds of a US Recession
Bloomberg Economics is presently logging the chances of America undergoing a recession as 38%. This is far from comforting, especially considering that back in April, the likelihood of a US recession stood at 0%.
This major uptick, alone, further demonstrates how the Federal Reserve’s interest hikes are not bringing about economic stability. If anything, these hikes are making life more unaffordable for Americans.
Is Biden's economy working for you?
Biden’s massive spending, fiscal & regulatory policies, and his war on American energy, along with the Federal Reserve’s reckless printing of money, have pushed our country into stagflation and to the brink of recession. pic.twitter.com/AP7p8MfmWp
— Heritage Action (@Heritage_Action) July 5, 2022
However, there are a series of different factors contributing to the current 38% rate. These factors include growing inflation, reduced consumer confidence levels, and projected falls in second-quarter corporate profits.
All of this makes a major difference and has a domino effect on the US economy as we know it. This also explains why Congress and the Biden administration are being advised by the public to cut down on federal spending.
Meanwhile, Americans’ savings are declining and small businesses are struggling to make the necessary rent payments. All things considered, the United States could very well be faced with a recession at some point in 2023.
Little Help From the White House
At best, the Biden administration has fed the nation lip service about Biden’s interest in bringing down consumer costs. However, nothing serious has come of this.
The current conditions of savings accounts, interest rates, inflation, consumer confidence levels, etc., speak volumes. Other economic issues such as shortages in vital goods also can’t be overlooked either.
BREAKING — Federal Reserve Bank of Atlanta revises Q2 GDP Prediction down, now predicts -1% GDP Growth, signaling possible official start of US recession. pic.twitter.com/6yEZgvZTss
— Election Wizard 🇺🇸 (@ElectionWiz) June 30, 2022
The White House, to this day, has not revealed any comprehensive strategies to reduce the likelihood of America facing a recession. In fact, Biden’s been clear on multiple occasions that he doesn’t truly see the need to make any modifications to his policies.
In light of this, Americans shouldn’t hold their breath waiting for the White House to swoop in, save the day, or bring down the likelihood of more economic turmoil to come.
Are you concerned about the possibility of the United States going through a recession? What do you think about how the Biden administration has handled the economy? Please let us know your thoughts in the comments area below.