Bloomberg predicts when the US economy will enter recession

In an interview on CBS's "Face the Nation" program on July 9, US Treasury Secretary Janet Yellen said that Washington has not yet ruled out the possibility of the world's number 1 economy falling into recession.

The US recession scenario would begin in late 2023, coinciding with a moderate decline in consumption. (Source: iStock)

Moderate economic growth and persistently high inflation are acceptable in the United States, she said. Monthly job growth is slowing as expected after remaining high, and there is reason to be confident in the resolution to reduce inflation amid a strong labor market.

Meanwhile, according to analysis by Bloomberg news agency, the US economic recession scenario will begin at the end of 2023, coinciding with a moderate decline in consumption.

Recent reports show that US inflation may continue to ease slightly in June but underlying price pressures remain high, leading to the possibility that the US Federal Reserve (Fed) will continue to raise interest rates this month.

Previously, on July 7, President of the Bank of Chicago Austan Goolsbee said that US policymakers are taking the right steps to slow down interest rate increases.

However, most members of the Federal Open Market Committee (FOMC) agree to raise interest rates one or two more times this year.

Ms. Zanet Yellen also said that although the Biden administration is considering additional controls on foreign investments, they will be limited in scope and will not significantly impact investments in China.

Source: https://baoquocte.vn/bloomberg-du-bao-thoi-diem-kinh-te-my-bat-dau-suy-thoai-234126.html