You’ve heard all about it recently with the world’s current status. All about that inflation, the recession, and an at best hazy economic outlook.
Every country is worrying about its economic future but what about America’s economy? Experts were honest and admitted that they are not entirely sure about America’s economic status.
Former CEO and current senior chairman of Goldman Sachs, Lloyd Blankfein, declared, “I would say without a doubt the economy has overheated.”
Everybody wants to know where the economy is headed, he added. “And I believe a fair point to make is that while it’s difficult to forecast the future, it’s much more difficult to do so at this very now.” The bigger picture and the more specific picture for each family exist in the realm of economics.
Michelle Singletary, author and personal finance columnist for The Washington Post, said that even if you’re doing well, hearing the words “recession” or “inflation at a 40-year high” might make you wonder, “Whoa, what’s going to happen to me?”
Nothing can determine really if it will be a good or bad outcome for America’s economy. In order to battle inflation, which in June was 9.1 percent over a year earlier and was the largest growth in more than 40 years, the Federal Reserve said on Wednesday that interest rates will be increased once again.
Additionally, the government declared that the gross domestic product decreased for the second consecutive quarter, an indication that the economy may be in a recession, though we’ll have to wait months to find out whether experts use that official word.
“You don’t have a gentle landing in most recessions,” Blankfein added. “As the Fed tightens, jobs are lost, and businesses not only scale down their recruiting intentions but also shrink. We’re beginning over from scratch. The state of the financial system is sound. There are more open positions than qualified applicants.”
Singletary emphasized the need for consumers to be aware of how the Fed’s activities may influence their financial choices.
