A former Obama economist warned the U.S. economy could experience a return to 1970s-style stagflation as the Federal Reserve combats inflation with rate hikes.
Jason Furman speaks during the National Association of Business Economics economic policy conference in Washington, D.C., Feb. 25, 2020., rising by 8.6%, much higher than economists expected. It marks the fastest pace of inflation since December 1981, underscoring just how strong inflationary pressures in the economy still are., which are forced to pay more for everyday necessities like food, gasoline and rent.
But the Fed's policies to hamper consumer demand and tame inflation are expected to slow the economy, with a growing number ofin the next two years. Goldman Sachs, Bank of America and Deutsche Bank have all raised the odds of a downturn in 2022 or 2023, and Fed Chairman Jerome Powell has conceded there's a real possibility of a recession.
Furman said that he expects central bankers to finish the year with interest rates near 4% as they race to catch up with inflation. But consumers shouldn't expect to see prices fall right away, he said. Rampant inflation has become a major political liability for President Biden ahead of the November midterm elections, during which Democrats are expected to lose their already razor-thin majorities. Surveys show Americans see inflation as the biggest problem facing the country. And many households blame Biden for the price spikes.
Norge Siste Nytt, Norge Overskrifter
Similar News:Du kan også lese nyheter som ligner på denne som vi har samlet inn fra andre nyhetskilder.
Federal authorities searched former Justice official Jeff Clark's homeFederal authorities searched the home of former DOJ official Jeffrey Clark on Wednesday, a person familiar with the activity said. He was seen as sympathetic to Trump's election fraud claims.
Les mer »
Biden's policies teeing up 'worst recession' America has faced, former energy secretary warnsFormer Energy Secretary Rick Perry joins 'Mornings with Maria' to provide insight into how the Biden administration is handling U.S. energy policies.
Les mer »
Roe: Michelle Obama, other celebrities react with heartbreak, anger, f-bombsFormer first lady Michelle Obama said ‘this horrifying decision will have devastating consequences,’ while Monica Lewinsky bluntly denounced the justices who voted to overturn Roe v. Wa…
Les mer »
Michelle Obama Responds to 'Horrifying' SCOTUS Decision: 'It Must Be a Wake-Up Call'On June 24, Michelle Obama reacted to the Supreme Court's Dobbs v. Jackson ruling that overturned Roe v. Wade and the federal right to abortion.
Les mer »
Michelle Obama Is Already Dancing to ‘Break My Soul’: ‘Queen Beyonce, You’ve Done It Again!’The former first lady is just as excited for ‘Renaissance’ as the BeyHive is.
Les mer »