Business Today

The United States could fall into recession again

The US economy could fall into recession again. The cut-off situation during the ‘subprime’ crisis a decade ago may return. A recent survey by Deutsche Bank authorities in Germany has revealed such fears. The study also predicted that the situation could spiral out of control. Economists at the German company have called on the US Federal Reserve to take necessary steps to curb the rise in interest rates. The US economy has been hit hard by declining commodity demand in the post-Corona situation.

The top US bank aims to keep inflation at 2 percent. The message is not to take the risk of rising interest rates to revive the industry.

In fact, in the next phase, economically strong countries are slow to turn around. The situation is similar in countries identified as ‘potential’ in terms of economy. Due to these two, some experts think that the fear of recession is intensifying in the world economy.

They claim that in the post-Corona situation, there are clear signs of a recession in the American skies. The bond market as well as the manufacturing sector is on the verge of contraction. As a result, there is a strong fear of retrenchment. The situation could worsen due to the Russia-Ukraine war. The job market can be hurt.

The survey firm Moody’s Analytics recently predicted that the unemployment rate in the United States could soon reach the record of the fifties.

According to another CNBC poll, 61 percent of Americans fear a recession. The results were obtained from a survey of 4,000 adults.But not everyone is in the same predicament. According to the poll, Republicans are more likely to be in recession. That fear is not so strong among supporters of the ruling Democrats. Apart from this, those who think that their financial situation is deteriorating this year are also more likely to be in recession.