UPDATED 2:57 PM PT – Friday, December 2, 2022
Economists have warned that a deeper economic crisis will occur in the United States in the middle of 2023.
According to analysis from the Kroll Institute, the U.S economy is slowing down as effects of the multi-trillion stimulus measures are decreasing. In addition, ongoing interest rates that were increased by the Federal Reserve are stifling the economic activity.
As a result, analysts believe that the economy will fall into a recession once households and businesses run out of savings.
The Biden administration continues to insist that the economy is doing well despite two-quarters of negative GDP this year, a decline in business investment and the rising national debt.
Megan Greene, the global chief economist for the Kroll Institute commented on the issue.
“The big question is whether the fed can continue to do this without preaching U.S into a recession or not, and the fed is hopeful that maybe they can avoid a recession. I much less hope on that,” she said. “Actually, I think we will probably have a recession but its gonna take a while because there is so much cash in the economy, both among housefuls and aggregates and also among corporates.”