The US economy may take a hit. Wall Street Journal survey data reveals this Financial experts expect the country to face an economic slowdown this year.
More than two-thirds of economists at 23 large financial institutions that do business with the Federal Reserve believe The United States will experience a “shallow” or “mild” recession in 2023. Two institutions polled predict a recession next year.
The probe involved big names in the financial services industry, including Barclays Plc, Bank of America Corp, TD Securities and UBS Group AG.
as a whole The Federal Reserve was named as the main cause of the recession due to rate hikes to fight inflation and reach its target., At the time of writing these lines, the inflation rate in the US is 7% as compared to the desired rate of 2% by the Federal Reserve.
Other factors precipitating the recession include the pandemic’s consumption of savings, a slump in the housing market and the increasing stringency of banks when it comes to lending.
The survey also showed that many economists expect unemployment in the country to rise from 3.7% to more than 5% in November 2022, accompanied by a general economic contraction.
However, Credit Suisse Group AG, Goldman Sachs Group Inc, HSBC Holdings Plc, JPMorgan Chase & Co and Morgan Stanley offered a more optimistic view of the situation, saying a recession would be avoided in both 2023 and 2024.
usually, The state of the US and world economy hasn’t been the best forecast for years to come, In October, Elon Musk said that the global recession could last till the end of the year i.e. around 2024.
Recurring global problems explain these bleak prospects, such as widespread energy shortages and inflation.
Some experts in the decentralized finance sector have spoken publicly about cryptocurrencies, specifically bitcoin (BTC), as a hedge against monetary inflation.
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