Joe Biden, the President, is unable to acknowledge the reality of the situation in the country. On the other hand, we were aware that inflation would eventually cause a downturn in the economy.
When questioned about it, he enjoys playing the name game with the questioner. He stated that it is just a word, and that we are free to give it any name we like. He asserts that his primary concern is how the current state of the economy will influence the lives of average Americans.
So, what do you think? It is being referred to as a recession by economists. The only point on which they are unable to reach a consensus is whether it has already been implemented or whether it will become operational over the next few months.
Buckle up. It looks like we're in for a choppy journey.
In order to gain further insight into the current state of the economy, the National Association of Business Economics (NABE) recently carried out a poll. We are confronted with a harsh reality due to the fact that the Federal Reserve has been unable to get inflation under control without sparking concerns about a potential economic downturn.
Seventy-two percent of the economists who were questioned said that they anticipate that there would be a recession in the United States by the middle of the following year, but some argue that it has already begun.
The issue is that economists have conflicting predictions about the future, which is one of the reasons why this situation is so exceptional. There are around 19% of economists who believe that a recession has already begun in the country. In the meantime, 20% of people believe that the next recession won't hit until the middle of the year 2023.
The President of the NABE, David Altig, stated that the survey findings reflect many different perspectives held by the panelists. Simply taking this into consideration hints that there is less clarity than normal regarding the outlook.
During a news conference that took place one month ago, Jerome Powell, Chairman of the Federal Reserve, addressed the topic of inflation as well as the possibility of it causing a recession. Unfortunately, even he has lost his confidence that there is a way to get inflation under control and is questioning if there even is a road that can be taken.
In order to bring down inflation, there have been significant increases in interest rates. These interest rates are contributing to the difficulties that are currently being experienced in the housing market.
Among the responses to the NABE study, there is one topic on which the vast majority of economists appear to be in agreement. 73% of respondents say that they do not have very much faith that the Fed will be able to bring inflation down to its target of 2% without triggering a recession.
The Inflation Reduction Act was just recently enacted, despite the fact that there is very little faith that the political law can actually achieve what it claims it would do to reduce inflation. Bernie Sanders has been very vocal about his disapproval of the law that was passed by his party, claiming that it will not accomplish anything to bring down the rate of inflation.
In spite of this, 76% of those who participated in the survey have the opinion that it will assist reduce inflation in some way, notably with the 15% minimum business tax and the healthcare subsidies.
The passage of time will tell us whether or not we are able to rely on the actions of the Democrats to be beneficial.
In the meantime, we continue to have the challenge of coping with gas prices that are higher than they were when Trump was in office. The cost of food and drink is outrageously high. The costs of the utilities are greater. Oh, and an increase in mortgage rates is on the way for borrowers who are not currently tied into a loan with a fixed interest rate. And rent for people who are currently living in apartments or rental houses.
People aren't spending as much as they did in the past, which indicates that a recession is almost certain to occur as a result.
At this time, there is no longer any question of "if." It's a matter of "when." Put some order into your funds as soon as possible because this might be an issue over the following two years. Let's just keep our fingers crossed that we can get rid of the Democrats in the midterm elections and get things back on track a little bit more quickly.
The preceding is a summary of an article that originally appeared on American Retirement Insider.