The US Economy Will Now Be Impacted

The US economy will now be impacted

World Affairs: The American (US) economy is on the verge of recession. In this area, inflation has reached a 41-year high. According to the data, prices for housing, food, and energy have all gone up. In June, the US Consumer Price Index increased by this amount, or 9.1%.

The Federal Reserve Bank has the authority to raise interest rates by 100 basis points, or 1%, by the end of this month. In such a scenario, a recession in the US economy is possible.

The US economy will now be impacted

Bill Gates, a co-founder of Microsoft, claims that conflict has caused inflation to rise, which has led to an increase in interest rates in most nations. The rise in interest rates is causing the economy to slow down, which will cause a recession.

The CEO of Tesla and SpaceX, the richest man on earth, Elon Musk, claims that the United States is already experiencing a recession. Incorrect capital allocation could cause the situation to get worse over the next few days.

Most nations in the globe are related to America since it has the largest economy there is. The recession actually began in America in 2008, before spreading to affect the entire world. However, India was not significantly impacted at the time. These well-known figures have stated their concern about an impending recession in America.

World Affairs:

According to Lawrence Summers, who was the US Finance Minister from 1999 to 2001, the US economy could experience a recession within the next two years. According to Summers, recession affects the world’s major economies whenever inflation is greater than 4% and the unemployment rate is lower than 4%. America has surpassed both of these criteria.

According to Lloyd Blankfein, senior chairman of financial services at Goldman Sachs, there is a very high likelihood of a recession, but the Federal Reserve has the power to stop it if it so chooses. According to David Solomon, CEO of Goldman Sachs, a recession might happen over the next 12 to 14 months. They estimate that there is a 30% chance of a recession.

At a panel discussion at the World Economic Forum, Adena Friedman, CEO of Nasdaq, one of the biggest stock exchanges in the world, cautioned that the recession could be brought on in large part by predictions of one.

Predictions have the potential to reduce consumer confidence and increase market volatility, which raises the possibility of a recession.

The US economy will now be impacted