The US economy may find it difficult to avoid slipping into recession
According to an economic report presented by the US Federal Reserve, on Friday, that the US economy may find it difficult to avoid slipping into recession.
The report suggested that the recession will prolong the US economy, as no central bank has ever succeeded in combating inflation without an economic sacrifice or a major recession.
The report, which was prepared by economists within the framework of a symposium organized by the University Of Chicago Booth School Of Business, listed some cases of low inflation in major economies that occurred in the fifties of the last century, stressing that the decline in inflation didn’t occur without sacrificing economic activity.
The report’s authors called on the Federal Reserve to tighten its policy to achieve anti-inflation by the end of 2025, as the report compared the current environment to the situation in the late 1970s when then-Fed Chairman Paul Volcker raised interest rates dramatically to address the inflation crisis.
Last September, US Treasury Secretary Janet Yellen warned of the danger of economic recession and high gasoline prices.
The official told CNN that there is a risk that gasoline prices will rise in the United States again, at a time when concerns are growing about pressure on the budget of American households, due to a rocket price hike.