After months of speculation, economists have finally confirmed a 100% chance of a recession in 2023, although experts predict it will be mild.
In an interview with Yahoo, former Federal Reserve Vice Chairman Alan Blinder acknowledged how painful rising costs are hurting consumers, but an impending recession isn’t as bad as people think. Not bad.
“There are several reasons to think that [the recession] Blinder said on Yahoo Finance Live. “One is the enormous amount of liquidity that consumers have accumulated, largely thanks to remittances made to mitigate the impact of the dreaded pandemic recession, leaving consumers sitting on piles of cash. And second, it’s a pretty dovish FOMC, and to me what that means is they’re less likely to overdo it. [on rate hikes]”
But Federal Reserve Chairman Jerome Powell shared that the central bank is looking to develop a “soft landing.” lower employment rates and soar wages Reduce inflation by at least 2% per year.
U.S. Department of Labor Data Revealed Inflation hit 40-year high of 6.6% in September It will increase by about 1.5% by next year.
As CNN reported, Goldman Sachs economists wrote in a note to clients on Sunday: “So far, tightening of fiscal and monetary policy has been successful in supporting demand growth without accidentally overdoing it and triggering a recession. “We’ve been able to slow down a lot, which is an impressive achievement.” “Too much focus on lagging indicators, too little patience, too fast to measure economic impact in real time can lead to a wholly unintended recession.”
https://www.essence.com/news/money-career/recession-2023-very-likely/ Experts Say A 2023 Recession Is 100% Likely