(AmericanProsperity.com) – Analysts and experts think that the United States economy is going to fall into a recession this year. Following the pandemic, there’s been talk of how the United States economy will look in the near future.
A recession might not be as likely as we once thought after the Federal Reserve spoke out about its goals for inflation. On Monday a survey from the National Association of Business Economics showed that many expect inflation to stick where it’s at, rather than falling to the Federal Reserve’s goal percentage of 2%.
Although inflation isn’t where many want it to be, it did fall from 9.1% in July down to 3.4% in December. In response to this, many experts were surprised to see that the economy continued to grow and there weren’t as many layoffs as they anticipated. This could potentially mean that they could achieve a soft landing, which would mean that we beat inflation without causing a recession.
“Panelists are more optimistic about the outlook for the domestic economy,’’ said Sam Khater, who is a chief economist at Freddie Mac. With this said, they expect to stop raising rates and they plan to lower them three times this year.
There is still rising conflict about global conflicts as many say that that is more likely to cause inflation to rise. Some experts have spoken about global conflicts like a possible war with Taiwan and China, as well as the war in the Middle East that could potentially drive up prices of goods such as gas or oil prices. Others have worried about what the economy might look like following the upcoming election in November.
Those who took part in the survey said that one big issue to combat is the country’s debt, which many say is a problem of budget policies in the government, and that they need to be much stricter than they are to combat debt.
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