In the article, Horsley discussed the fears about the United States entering a recession. He explained that many measures, including more available employment and declining unemployment, may suggest that the economy is strong. However, the Feds anticipate that they could not lower the inflation rate to 2% due to the scarcity of workers and high consumer demands. The impending increase in the interest rates also threatens to push the country into a recession. Horsley later discussed how inflation is not an isolated event in the United States. The pandemic has challenged the world economies. It is, however, up to the Feds to bring a balance by reducing inflation without pushing the country to recession.
The article did not produce much information that general readers may understand fully. For instance, the article discussed how the Fed planned to increase the interest rates to combat inflation. However, it did not elaborate on how rising interest rates could lower the demand from the consumers and address the alarming inflation in the United States.
The article provided a broad view of the topic, which can be relevant in understanding the interactions between world economies. For instance, it mentioned the Ukraine invasion and considered how it could exacerbate the world economies. It also touched on the shortage in semiconductors and how it impacted consumer prices and inflation. Thus, the author showed a better picture of the world and its economies. The article, by doing so, also emphasized how world economies are ultimately related.
The author did not speculate and used appropriate evidence in the article. The author cited other reputable and credible sources to support his claims. The author used empirical evidence or statements from experts to build up the argument. It allowed the article to be more credible and the users to read laterally to verify the claims.
The U.S. will probably enter a recession without a doubt. The contractionary policies Biden's proposing along with the inflation rate rising will cause economic issues. If anything, stagflation will occur due to output declining and inflation rising
ReplyDeleteI agree that a recession is likely. The pandemic affected the economy but the inflows from the stimulus from the government greatly reduced the pressures on the economy. Now that there is growing inflation and contractionary policy from Fed, a recession may be on the horizon.
ReplyDeleteI read an article, where JPMorgan Chase's employee predicted that the US will enter the recession in 2023. He supported his prediction with economical indicators that we experience. The Fed should intervene this because no one except them is capable of doing it
ReplyDeleteWith the war, prices rising, and mortgage interest rates growing, everything is disaster. I definitely see the economy going into a recession In another article I read, agriculture is not doing well either so it feels like nothing is starting to get better and is only getting worse.
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