• Latest
  • Trending
  • All
  • News
  • Business
  • Lifestyle
Biden Is Hiding a Dirty Secret on Page 13 of His Tax Return, He Didn’t ‘Pay His Fair Share’ Again

Growing Number of US Economists Sound Recession Alarm Bells: ‘Very, Very High Risk’

May 19, 2022
Christians Demand Apology After Dem Mayor Condemns Pro-Life Group’s Event — Which Antifa Mob Disrupted

Christians Demand Apology After Dem Mayor Condemns Pro-Life Group’s Event — Which Antifa Mob Disrupted

May 27, 2025
AOC Doubles Down On Political Loser As Dems Seek To Ditch ‘Abolish ICE’ Bandwagon

AOC Doubles Down On Political Loser As Dems Seek To Ditch ‘Abolish ICE’ Bandwagon

May 27, 2025
Trump-Appointed Judge Deals Blow To Feds’ Plan To Nix Blue State Climate Toll Scheme

Trump-Appointed Judge Deals Blow To Feds’ Plan To Nix Blue State Climate Toll Scheme

May 27, 2025
Leo Terrell Serves Up Brutal Reminder For Harvard President About Student Visas

Leo Terrell Serves Up Brutal Reminder For Harvard President About Student Visas

May 27, 2025
Rick Scott Tells Charlie Kirk He Won’t Support Trump’s ‘Beautiful Bill’ In Present Form

Rick Scott Tells Charlie Kirk He Won’t Support Trump’s ‘Beautiful Bill’ In Present Form

May 27, 2025
NAN HAYWORTH: Don’t Count Mike Lawler Out After His SALT Stand

NAN HAYWORTH: Don’t Count Mike Lawler Out After His SALT Stand

May 27, 2025
Bear Grylls Talks About His Christian Faith: ‘It Has To Be Tried To Be Felt’

Bear Grylls Talks About His Christian Faith: ‘It Has To Be Tried To Be Felt’

May 27, 2025
Democrat Rep Jumps Down Throat Of CNN Host For Asking Her About Voters’ Negative Views About Party

Democrat Rep Jumps Down Throat Of CNN Host For Asking Her About Voters’ Negative Views About Party

May 27, 2025
House GOP Puts Democrat Mayor Under Microscope For Allegedly ‘Aiding And Abetting’ Illegal Immigration

House GOP Puts Democrat Mayor Under Microscope For Allegedly ‘Aiding And Abetting’ Illegal Immigration

May 27, 2025
NPR Sues Trump, Claims Cutting Its Taxpayer Funding Amounts To ‘Free Speech’ Violation

NPR Sues Trump, Claims Cutting Its Taxpayer Funding Amounts To ‘Free Speech’ Violation

May 27, 2025
EV Startup Promised To Cut China Ties — Then Reportedly Shared US Data Anyway

EV Startup Promised To Cut China Ties — Then Reportedly Shared US Data Anyway

May 27, 2025
‘Big, Beautiful’ Bill’s Policies Prove Popular In Key House Districts, Poll Shows

‘Big, Beautiful’ Bill’s Policies Prove Popular In Key House Districts, Poll Shows

May 27, 2025
  • Donald Trump
  • State of the Union
  • Elon Musk
  • Tariffs
  • Congress
  • Faith
  • Immigration
Tuesday, May 27, 2025
  • Login
IJR
  • Politics
  • US News
  • Commentary
  • World News
  • Faith
  • Latest Polls
No Result
View All Result
IJR
No Result
View All Result
Home News

Growing Number of US Economists Sound Recession Alarm Bells: ‘Very, Very High Risk’

by Western Journal
May 19, 2022 at 10:35 am
in News
240 12
0
Biden Is Hiding a Dirty Secret on Page 13 of His Tax Return, He Didn’t ‘Pay His Fair Share’ Again

US President Joe Biden speaks at the Alumni-Foundation Event Center of North Carolina Agricultural and Technical State University in Greensboro, North Carolina on April 14, 2022. - US President Joe Biden traveled to North Carolina on Thursday to tout his efforts on combating inflation and jumpstarting high-tech research and manufacturing to make the United States more competitive in the global economy. (Photo by MANDEL NGAN / AFP) (Photo by MANDEL NGAN/AFP via Getty Images)

491
SHARES
1.4k
VIEWS
Share on FacebookShare on Twitter

Economic storm clouds on the horizon could be the first sign of a looming, recession, according to many economic experts.

“Recession risks are high — uncomfortably high — and rising,” Mark Zandi, chief economist at Moody’s Analytics, told The Washington Post.

“For the economy to navigate through without suffering a downturn, we need some very deft policymaking from the Fed and a bit of luck.”

Zandi said high gasoline and commodity prices from pandemic-related supply chain snarls and Russia’s invasion of Ukraine war help make the odds of a recession in the next two years at around 50 percent.

A recession is defined as two consecutive quarters of negative contraction in the economy. The U.S. economy contracted in the first quarter of this year, the Post reported in late April.

“We’re traveling very close to the edge,” Zandi told the Post. “The housing market is the next thing that’s going to roll over; the question is just how hard.”

He is not alone.

Former Goldman Sachs chief executive Lloyd Blankfein this week said there is a “very, very high risk” of recession, while Wells Fargo CEO Charlie Scharf said there was “no question” the economy is facing troubles, whatever the label may be.

Former Federal Reserve chair Ben Bernanke said stagflation – a slow economy and high inflation that were a hallmark of the 1970s – could be near.

The Federal Reserve has raised interest rates .75 percentage points this year, and may do more to cool inflation. But that carries its own risks for the economy, as shown by a drop in new home construction and demand for mortgages. Both are very sensitive to interest rates, which have roughly doubled on 30-year mortgages over the past year.

“There is an extreme sense of nervousness out there,” Kevin Retcher, president of First Meridian Mortgage in Alexandria, Virginia, told the Post.

“It’s rare to have people win contracts and then back out, but that’s what’s been happening,” he said.

“Home builder sentiment fell to the lowest level in two years in May,” Yelena Maleyev, an economist for Grant Thornton, said in an analyst note, according to the Post. “Builders are seeing less foot traffic and expect sales to be softer as we enter the busy home-buying season.”

Although so far, consumers have been spending as if there was a need to make up for time lost during COVID-inspired lockdowns, inflation that is hitting 40-year highs may be taking its toll.

Big retailers have posted disappointing earnings, so much so that Walmart’s stock took an 11 percent hit on Tuesday, its worst free fall in 35 years, according to the Post. Target was next, with a 26 percent drop in its stock following a 52 percent drop in its quarterly profits, the Post reported. Target ascribed its woes to a slow consumer demand for big-ticket items.

“While we anticipated a post-stimulus slowdown in these categories … we didn’t anticipate the magnitude of that shift,” Brian Cornell, Target’s chief executive, said in a Wednesday earnings call, the Post reported. “When we talk to our guests, they often express their concerns about a host of rapidly changing conditions, ranging from geopolitics to the high and persistent inflation they’ve been experiencing.”

Some say the issue is how to adjust the economy without destroying it.

“Near term, the U.S. economy is holding up rather well despite the trouble abroad and the high prices at the checkout stand,” Beth Ann Bovino, chief U.S. economist for S&P Global, told the Post.

Bovino estimated a 35 percent risk of recession in the next year.

“People are spending, businesses are still trying to hire. But there are certainly challenges ahead,” she told the Post. “The Fed’s actions will slow the economy, but the question is whether they could also topple the applecart.”

This article appeared originally on The Western Journal.

Tags: economicsInflationpoliticsrecessionthe economy
Will Joe Biden lead America into a recession?

Completing this poll entitles you to our news updates free of charge. You may opt out at anytime. You also agree to our Privacy Policy and Terms of Use.
Yes: 0% (0 Votes)
No: 0% (0 Votes)
Share196Tweet123
Western Journal

Western Journal

Advertisements

Top Stories June 10th
Top Stories June 7th
Top Stories June 6th
Top Stories June 3rd
Top Stories May 30th
Top Stories May 29th
Top Stories May 24th
Top Stories May 23rd
Top Stories May 21st
Top Stories May 17th

Join Over 6M Subscribers

We’re organizing an online community to elevate trusted voices on all sides so that you can be fully informed.





IJR

    Copyright © 2024 IJR

Trusted Voices On All Sides

  • About Us
  • GDPR Privacy Policy
  • Terms of Service
  • Editorial Standards & Corrections Policy
  • Subscribe to IJR

Follow Us

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Politics
  • US News
  • Commentary
  • World News
  • Faith
  • Latest Polls

    Copyright © 2024 IJR

Top Stories June 10th Top Stories June 7th Top Stories June 6th Top Stories June 3rd Top Stories May 30th Top Stories May 29th Top Stories May 24th Top Stories May 23rd Top Stories May 21st Top Stories May 17th