There has speculation about an impending recession under the Biden administrations policies. After the 2020 election and Joe Biden’s agenda. Couple that with massive government spending by the democratically controlled congress and we have seen a contracting of the economy this past year.
Now the US mortgage giant Fannie Mae is saying the US will be in a recession most likely as soon as next year.
Fox Business reported:
The U.S. economic outlook is dimming and a downturn could be on the horizon as the Federal Reserve moves to tame the hottest inflation in four decades, according to Fannie Mae economists.
The mortgage lender said in a new economic and housing forecast that the economy faces a “modest recession” in 2023 as a result of the Fed’s aggressive monetary policy tightening trajectory, fallout from the Russian war in Ukraine and the worst inflation in a generation.
“We continue to see multiple drivers of economic growth through 2022, but the need to rein in inflation, combined with other economic indicators, such as the recent inversion of the Treasury yield curve, led us to meaningfully downgrade our expectations for economic growth in 2023,” Doug Duncan, Fannie Mae’s chief economist, said in a statement.
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