Banks and politicians predict the U.S. will enter a recession in 2023. | File Photo
Banks and politicians predict the U.S. will enter a recession in 2023. | File Photo
Arizona's economy is expected to worsen as banks and politicians alike predict that the U.S. will enter a recession in 2023 following months of inflation.
In a report released Tuesday, the World Economic Forum found that both retail and professional investors hold a gloomy outlook on the country's economic future, with one Bloomberg Markets Live survey revealing that 48% of investors expect the U.S. to fall into recession next year. Another 21% expect the downturn to happen in 2024, while 15% of the 525 respondents expect the recession to come as early as this year.
"PPI is in at 11.4% for March, this forecasts an even higher number of future inflation and certainly the beginning of a recession," said Cook County Commissioner Sean Morrison in a tweet on Wednesday. "The reckless Biden executive orders and policies issued since day one, are the main contributors to most of this. #selfinflicted"
Deutsche Bank was the first major Wall Street firm to predict a recession is on the horizon for the U.S. and was quickly joined by the US Bank of America, which noted that surging consumer prices, combined with an increasingly combative central bank, could precipitate an economic downturn, according to Fox News.
"We no longer see the Fed achieving a soft landing," Deutsche Bank economists led by Matthew Luzzetti wrote in a recent report, according to Fox News. "Instead, we anticipate that a more aggressive tightening of monetary policy will push the economy into a recession."
The current oil shock brought on by the war in Ukraine is one possible cause for the possible recession, as similar situations have occurred in the past, according to The Hill. The Bureau of Labor Statistics recently released the Consumer Price Index data for the 12 months ending in March, which found an 8.5% all-items annual increase, which is the largest increase since 1981.
In a poll conducted by the Wall Street Journal, 63% disapproved of Biden’s handling of inflation. Additionally, by a wide margin, respondents chose Republicans over Democrats as better able to handle rising prices.
Current mortgage rates in Arizona are 5.19% for a 30-year fixed mortgage, 4.32% for a 15-year fixed mortgage, and 4% for a 5/1 adjustable-rate mortgage, according to Bankrate.com.
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