According to a recent study by top economists, the average American is going to experience some really tough times by 2023. The severity of a recession is still unknown.
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A tough year is predicted for Americans by economists, and things don’t look good. Even though we knew things would be bad with Biden in charge, we didn’t expect it to be this bad. If the market is going to improve next year, Americans need a miracle in the next two years.
Fox Business claims that Joe Biden is a terrible president for the economy.
Despite rising inflation and gas prices, we still face supply chain problems and shortages of essential items like baby formula.
Here’s the really bad news. It is possible that things will get worse in 2023.
A new report from Citi Global Wealth Investments predicts that unemployment will top 5% next year in the U.S.
The group said in its latest outlook report published this week that the economy could lose an estimated 2 million jobs in 2023 as the jobless rate climbs to 5.25%.
“We believe that the Fed’s rate hikes and shrinking bond portfolio have been stringent enough to cause an economic contraction within 2023,” the economists said in the report. “And if the Fed does not pause rate hikes until it sees the contraction, a deeper recession may ensue.”
The Federal Reserve has been raising interest rates at the most aggressive pace since the 1980s in a bid to fight inflation. Policymakers have already approved six straight rate hikes, putting the federal funds rate into a range of 3.75% to 4% from near zero in March.
Bank of America, Goldman Sachs and Deutsche Bank are among the major Wall Street firms forecasting a downturn next year, although they remain uncertain about its severity.
Here is what the Bank of America CEO had to say on the issue of the feds continuing to raise rates.
According to Powell, lowering inflation may require an uptick in unemployment. A recession is a risk, but policymakers have warned that inflation would rise if they ended the tightening cycle too soon.
Americans are more concerned with how much more it will cost them next year than it did this year. It is likely that average households will have trouble regardless of whether the recession is mild or severe.
Fox Business also reported back in August that the Joint Economic Committee found that Americans spend $717 more per month because of inflation.
Republican congressmen from Arkansa, French Hill-member of the Financial Committee- joined Fox to talk about the impact inflation was having on American families. Here is what he had to say.
The Labor Department reported then that the financial squeeze was caused by a rise in the cost of everyday items such as cars, rent, food, and health care. While the pace of price rises slowed slightly in July, the consumer price index still increased 8.5% – approaching a painful four-decade high.
To monitor how much higher prices are costing Americans across the country, the JEC Republicans launched the State Inflation Tracker in April. In order to calculate the figure, we compared prices in July for goods and services with prices in January 2021, when inflation was 1.4%.
According to the analysis, “Prices did not change from June to July 2022, but increased 13.3% from January 2021 to July 2022, costing the average American household $717 in July alone.”
As disconcerting as it may sound, companies large and small are laying off in droves as they prepare for what could be a disastrous 2023. And unfortunately, Americans know all too well the effects of high inflation rates. Those past middle-aged now were young ones when the US had to contend with such tough-to-swallow economics. Fortunately though, proving time and time again their mettle, despite the unthinkable challenges thrown their way, Americans exemplify resiliency and ingenuity when confronted with overwhelming odds stacked against them.
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