Monday, December 5, 2022
Home > BUSINESS > US Economy Taking the World into Recession with it

US Economy Taking the World into Recession with it

According to several economists, the United States is facing fears as the Federal Reserve remains bullish in tackling high inflation, and US officials increasingly talk about the need to impose new strategies and plans to get price pressures under control.

Edward Moya, a senior market at foreign exchange firm OANDA, said there is still a good amount of strength in the US labour market, which is going to allow the Federal Reserve to remain aggressive in tackling inflation.

Edward Moya added that the price pressures are not going away easily, and when they take a look at energy prices, and this move that they have been appreciating appears to end and it also looks like oil and gas prices will be heading high once again.

OPEC+ and its allies has decided to cut oil production by 2 million barrels of crude oil per day. EJ Antoni, a researcher at The Heritage Foundation, said that this increases costs, not only for energy, but everything they do and everything they purchase. Hence the price of everything is increasing, including food.

The US GDP (gross domestic product) has contracted 0.6 percent in the last quarter after dropping by 1.6 percent between January and March 2022. EJ Antoni added that they already had recession in the first six months of 2022.