Top Economist Reveals What The Future Will Look Like
(AmericanProsperity.com) – The US economy is in a crisis. Inflation is higher than it’s been in decades, contributing to record-high gas prices, and Americans are struggling to pay for food and rent. Some would say the country is already in a recession. Experts haven’t gone that far yet, but according to a top economist, the United States is hitting its breaking point.
Experts Predict the Odds
Mark Zandi, a chief economist at Moody’s Analytics, told C-SPAN the US had a 1-in-3 chance of falling into a recession in 2022. Zandi added the country is at “even odds” to do so in the next two years. The economist explained that although the risk of going into a recession is high, if the United States does fall into one within the next two years, it would likely be mild.
Still, current interest rates are concerning, threatening consumer buying power. Federal Reserve Governor Christopher Waller predicts that rates could jump another 2%. The year 2000 saw a record spike, with figures jumping 0.5% in May.
A Perfect Storm
COVID-19 and supply chain problems have also contributed to the crisis. Supply shortages have led to consumer demand increasing, which has further strained an already struggling system and prompted an increase in prices. The Biden Administration has blamed Russian President Vladimir Putin’s invasion of Ukraine as one of the leading causes of the current high gas prices in America, even though they were on the rise even before the war. Much of the world has put sanctions on Russian oil in an effort to cripple their economy and put an end to the fighting.
The attack on Ukraine has had an added impact on prices around the world as it has contributed to supply chain issues, namely in the food, gas, and oil industries. Ukraine is one of the world’s top grain suppliers, especially in terms of wheat. However, Russia has put a hold on Ukrainian exports, blockading many of them. Moscow has mentioned it will remove the embargo on Ukrainian grain and fertilizer, which has also seen drastic price increases, but only if the United States lifts its sanctions on Russia.
The US has declined Russia’s offer, meaning the blockade will continue and prices will likely continue to increase across the globe — a dangerous revelation for America, when it’s already on the brink of recession.
People are already struggling to live. What would the effect of a recession look like for US families? How many would starve or go homeless? It’s hard to say, but many Americans are bracing for the potential impact.
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