Economists Warn U.S. Already In Recession Or Could Be Soon—The Latest In A Series Of Dismal Forecasts

According to a survey conducted by the National Association for Business Economics, the United States is already in a recession and could soon.

More than two-thirds of business economists believe the U.S. is already in a recession, according to a survey by the National Association for Business Economics.

According to the survey, over half of respondents think the U.S. will be in a recession by the end of the year.

Slowing sales, shrinking profit margins, and wages are some of the causes of concern according to respondents.

In the last quarter, more respondents than not reported a decrease in profit margins.

The gap between the number of respondents who reported rising sales and those who reported falling sales fell to 8 percentage points, the lowest level in more than a year.

According to respondents, profit margins will continue to contract over the next three months.

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There are fears of layoffs and high levels of unemployment. The Federal Reserve believes a weaker labor market is necessary to control inflation. In the last survey in July, 42% of respondents reported higher employment at their firms. Less than half of the firms surveyed in January said they would increase staff over the next three months. Wage costs are expected to fall over the next three months and reach the lowest level in over a year.

There has been a long line of gloomy predictions for the US economy. The Fed has pursued a policy of aggressive rate hikes to regain control of inflation, which is sitting at the highest level in four decades. The U.S. is not alone in its economic troubles, as many other nations are facing record levels of inflation and cost-of- living crises as well. The World Bank said there is a real danger of a global recession as central banks fight high inflation. There are many factors affecting the economy, but the impact of Russia's invasion of Ukraine and the Covid-19 epidemic are the main ones.

Does the Federal Reserve want you to lose your job? It'sComplicated. There is a magazine called "Forbes."

Biden says the US is strong enough to avoid a recession.