A recession is “inevitable” despite Biden’s claims to the contrary, former president of the Federal Reserve Bank of New York, Bill Dudley, outlined in Bloomberg on Wednesday.
VICTORIA JONES/POOL/AFP via GettyA recession is “inevitable” despite President Joe Biden’s claims to the contrary, former president of the Federal Reserve Bank of New York, Bill Dudley, outlined in Bloomberg on Wednesday.
“If you’re still holding out hope that the Federal Reserve will be able to engineer a soft landing in the US economy, abandon it,” DudleyDudley’s reasoning is broad. First, he pointed out the Fed will have to focus on tamping down inflation with interest rate hikes instead of growing the economy. Second, if the Fed fails to reduce inflation, soaring prices may continue, resulting in expectations that “would likely become unanchored, necessitating an even bigger recession later.
He also explained the “Fed has never tightened enough to push up the unemployment rate by 0.5 percentage point or more without triggering a recession.” Dudley continued, “[a]ccording to the Sahm rule, when this trigger is reached the next stop is a deeper slump, in which unemployment increases by at least 2 percentage points.”
Federal Reserve officials on Wednesday revealed new projections for the economy that reveal central bankers now expect the economy to grow less while inflation, unemployment, and interest rates to run higher than previously forecast.
Indonesia Berita Terbaru, Indonesia Berita utama
Similar News:Anda juga dapat membaca berita serupa dengan ini yang kami kumpulkan dari sumber berita lain.
President Joe Biden floats lifting federal gas tax, but how much will it help in SoCal?As the national average for a gallon of gas hovers around $5, President Biden is considering a federal holiday on the gas tax that goes towards repairing roads and transportation grants.
Baca lebih lajut »
Joe Biden eyes green energy shift as bright side of difficult economy'We have a chance here to make a fundamental turn toward renewable energy, electric vehicles, and not just electric vehicles but across the board,' Biden said.
Baca lebih lajut »
Joe Biden Snaps at Reporter Asking About Recession Fears: 'Don't Make Things Up!'President Joe Biden snapped at a reporter Monday after she asked about fears of an economic recession.
Baca lebih lajut »
Joe Biden Claims 'I'm Feeling Great' After Tipping over BikePresident Joe Biden claimed Monday he was doing well after tipping over his bike on Saturday, speaking to reporters after his public fall.
Baca lebih lajut »
What Joe Biden said about a 'second pandemic'A video of Joe Biden saying there will be a second pandemic during a White House speech has been viewed over 800,000 times on social media.
Baca lebih lajut »
Joe Biden's Border Policy Attracts World's MigrantsThe rising share of global migrants arriving at the southern U.S. border has prompted pro-migration advocates to fund a mosque in Tijuana, Mexico.
Baca lebih lajut »