Economists Project that the United States Will Enter an Inflationary Recession in 2023
Jose Nino
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The United States is expected to enter a recession in 2023 and face high inflation levels heading into 2024, according to findings published by the National Association for Business Economics’ (NABE) most recent survey that was reported on by AFP on March 27, 2023.
Per this survey, inflation is expected to stay above 4% in the US at the end of 2023. The survey put out a summary of the 217 NABE members’ responses and was carried out between March 2 and March 10, the organization said in a statement.
These survey results came as the US Federal Reserve hiked interest rates by 4.75% points in an effort to contain inflation. Inflation reached record levels in 2022 and now the US could face a recession as several major American banks have started to collapse.
Silvergate Bank, Silicon Valley Bank, Signature Bank, and First Republic Bank all collapsed within a span of a few weeks, putting a massive strain on financial markets.
A combination of heavy-handed regulations — largely expanded during the Wuhan virus pandemic — and the US’s easy money policies are creating the conditions for a stagflationary recession. It’s the public policy, stupid — not random elements — that are causing the US’s current economic malaise.
When the political class finally grasps this harsh reality, the US will finally be able to prosper.
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