Elon Musk, the CEO of Tesla and SpaceX, warned that the US is heading for a recession. Earlier, similar warnings were given by former US President Donald Trump, analysts at Goldman Sachs, and Nouriel Roubini, an economist and professor at New York University.
“A recession is inevitable at some point. As to whether there is a recession in the near term, that is more likely than not,” Musk said.
According to Goldman Sachs, there is a 20-30% probability of a recession in 2023, as well as a 48% cumulative probability in the next two years. “We are increasingly concerned that the Fed will feel compelled to respond forcefully to high headline inflation and consumer inflation expectations if energy prices rise further, even if activity slows sharply,” the report said.
Nouriel Roubini expects the US economy to enter a recession by the end of this year, as indicated by declining consumer confidence, retail sales, manufacturing activity, and housing data amid high inflation.
Earlier, US President Joe Biden downplayed pessimistic outlooks on the US economic growth and called recession avoidable. He stated Americans were “really, really down” after experiencing the COVID-19 pandemic, economic instability, and a sharp hike in gasoline prices over the past two years.
Europe may repeat crisis of 2008
Throughout its history, the European economy has come across numerous crises. The current situation faintly resembles the financial crisis of 2008. However, its magnitude is likely to exceed the then financial collapse.In 2008, the catastrophe began with the housing market bubble. In this case, the key reason lies in the halt of Russian gas supplies.
08:34 2022-10-05 UTC+00
US at rising risk of recession
While the US government continues to struggle with worsening inflation, its economy is increasingly at risk of falling into a serious recession.According to recent studies, most analysts expect the United States to face another large-scale economic crisis.
14:48 2022-10-04 UTC+00
Oil shortage to cause food crisis
Following the energy crisis, the world may face a food crisis. Notably, the reason for both crises is the same – the ban on Russian oil imports. Analysts warn that the boycott of Russian oil could trigger a food crisis in many European and other states.The Times has recently unveiled a gloomy forecast of the Bank for International Settlements (BIS).
14:32 2022-10-04 UTC+00
Joe Biden calls on oil firms to bring down prices
In an attempt to tackle surging gasoline prices in the country, US President Joe Biden decided to ignore the basic laws of economics and demanded that oil companies reduce their selling prices.
14:14 2022-10-04 UTC+00
Fed statements affect global economy
The US Federal Reserve System proved to be the world's most influential financial regulator. Its influence is so powerful that just one statement is enough for global economic shifts, even without the use of any financial instruments. CNBC analysts confirm that Fed’s statements have such a far-reaching effect.
14:04 2022-10-04 UTC+00
Fed raises rates once again to combat inflation
The US Federal Reserve has raised its benchmark interest rate for the third consecutive time and is expected to do the same by the end of the year. This measure is supposed to help reduce global prices of oil, gas, and metals as well as other goods. The thing is that commodities are denominated in US dollars and most international settlements in the commodities markets are carried out in USD.
13:31 2022-10-04 UTC+00