Under the Biden administration, America’s economy has been in a consistent freefall.
A little over one year ago, the president and various members of his Cabinet dismissed warnings about inflation. Even Treasury Secretary Janet Yellen downplayed talk about inflation pillaging the US economy.
In the present day, 2021’s warnings about inflation have come to light in horrifying ways. For one thing, inflation’s current rate stands at 9.1% and could go even beyond this point.
At the same time, the Federal Reserve is moving up interest rates, which means expenses like loans and mortgages are taking more much-needed money from Americans.
It’s rapidly become clear that the current trajectory of the nation’s economy is not sustainable. Economists themselves are now warning that even more declines are all but certain.
The Latest From Experts on the US Economy
Updated predictions from economists are enough to put anyone on high alert. Thus far, Americans can expect a possible housing market crash, future issues with production, and ongoing upticks in prices.
A housing market crash would have a ripple effect, causing other negative economic consequences. At the same time, issues with production would generate further problems with the supply chain and available jobs.
The Biden administration, in efforts to dismiss concerns about the economy, generally references low unemployment rates. However, this is far from a bellwether of what’s to come for the US economy.
In July 2021, inflation was 5.4%, and Joe Biden told us it was temporary.
It’s now July 2022, inflation is 9.1%, and Joe Biden has no plan to fix it.
— Robert Sprague (@RobertCSprague) July 21, 2022
Other nations, such as Japan, have carried low unemployment numbers while also still weathering recessions.
Unfortunately, some businesses are already preparing for what economists are warning is coming. Companies like Lyft are laying off workers, while other establishments put a pause on hiring new staff.
Likewise, large banks are equipping themselves for what looks to be serious economic hardships to come.
The Federal Reserve Factor
For months on end, Americans have been told the Federal Reserve’s decision to raise the interest rate is rooted in the push to bring down inflation. Yet, inflation has continued to climb even with the central bank boosting the interest rate multiple times.
— Forbes (@Forbes) July 19, 2022
Meanwhile, economists have expressly stated that interest rate hikes could push America into a recession, rather than chip away at inflation. As loans become more expensive to acquire, this is also having a negative impact on the number of Americans who can realistically afford homes.
All things considered, it looks to be only a matter of time before a fully-fledged recession arrives.