Higher interest rates will push US economy into recession in upcoming year

(MENAFN) The United States economy is going to experience a recession in the upcoming year, according to The Wall Street Journal’s most recent quarterly survey of analysts, which was cited in an article published on Sunday.

The survey states that corporate and academic economists place the likelihood of a recession over the next 12 months at 61 percent on average. The prediction has slightly altered from the survey’s 63 percent result in October.

According to the WSJ story, the Federal Reserve had first aimed to reduce inflation by causing the economy to develop more slowly rather than drastically, a scenario known as “a soft landing.” But according to 75 percent of those surveyed by the Journal, the Fed won’t manage a gentle landing this year.

Despite a little more upbeat inflation prognosis, the warning still exists. According to the data, consumer price index inflation has decreased from 9.1 percent in June of previous year to 6.5 percent in December, as assessed by year over year change. By the end of this year, economists predict it is going to drop to 3.1 percent, and by 2024, they predict it is going to be 2.4 percent.


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