At the moment, the U.S. economy looks pretty good; low unemployment, people still spending money, and Gross Domestic Product increased by a not-too-bad rate of 2.1%.
These numbers had some economists breathing an audible sigh of relief. It’s going to be a “soft landing” for the economy, they assure us. No worries about a recession.
But other economists disagree. Interest rates are still high and will almost certainly go higher by the end of the year because inflation is still almost twice what the Fed’s 2% target is. There are also surging oil prices — oil closed at more than $88 in international markets and could hit $100 bbl before year’s end.
The resumption of student loan payments, the auto workers’ strike, tighter lending standards at banks, and a global economic recession already in motion being led by the world’s second-largest economy, China, all point to red lights blinking at the Fed and the White House.
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