Is the US economy heading for a recession?

Is the US economy heading for a recession? – Mail Bonus

New York: The US economy is entering a period of recession and sanctions against Russia over the Ukraine war in the eastern Donbas region have targeted boomerangs, which are downgrading equities and the entire money market in reverse and reversing bullish developments in bears.

According to the analysis of various economists, billionaires, investors, stock market players and even government officials, the economy is collapsing and markets will fall by 40 percent, causing concern as at least six out of 10 Americans put their savings into stocks in the hope that their income will increase. But “Do not despair” is the advice of players in the stock market.

Billionaire and major hedge fund investor Leon Cooperman says the US economy will contract and equities will fall much more. He told CNBC on Tuesday that the S&P 500 would fall by 40 percent in total from top to bottom. He said the index could not go back until it reached 3,000-20 percent near closing on Monday.

US equities have a long way to go before falling, says the former Cooperman hedge fund, which has predicted that the economy will collapse in 2023. A total decline of 40 percent is what he predicts as he believes the contraction has hurt corporate profits. He said it was unlikely that stocks would return to the bull market any time soon. This is based on the trend that in recent quarters investors have thrown away their shares in 2022, as the Central Bank has begun what is likely to be one of the fastest rounds of interest rate hikes in its history in an effort to curb unrestrained inflation. Even the cryptocurrency exchange has dropped by 86 percent.

Cooperman founded the hedge fund Omega Advisors, which he now runs as a family office.

According to Bloomberg’s economic analysis, traders, who fear the central bank sent a market into a bear zone on Monday, are strapping into a long dark night as equities are heading for their longest decline in months. Investors are interested in seeing if the central bank gives any indication of whether it will raise interest rates on faster cuts. There is evidence that it will, as it is the only option to curb inflation, which is said to be the worst in 40 years.

Despite equities, President Joe Biden asserted that the US economy was buzzing with low unemployment, saying that a strong recovery from the pandemic recession will become more apparent as inflation subsides. “I truly believe that we have made incredible progress by laying a new foundation for our economy,” Biden told the AFL-CIO, the largest U.S. trade union, on Tuesday.

In addition to using the nation’s defense fund to respond to high gasoline prices and work with European partners on plans to market Ukrainian grains, Biden cited proposals aimed at lowering the cost of childcare and prescription drugs, saying the richest Americans would be “I have a plan to cut gas and food costs,” he said, seeking to place the Democrats in the upcoming 2022 by-elections for all 435 seats in the House of Representatives on November 8 this year. .

“In Europe, a new survey of economists shows that many people expect the Bank of England to raise interest rates faster and longer than expected just a month ago, as it has been battling the highest inflation for decades. “Remember not to panic,” said Bloomberg experts.

The United States has imposed sanctions on Russian companies and exports, including oil, in connection with the invasion of Ukraine. Biden officials now acknowledge that the sanctions have affected the US economy. They are now quietly urging some US companies to use Russian products to try to offset the damage, experts say.

Although the Biden government predicted that the impact of these sanctions on the United States would be minimal – if it could ensure that they do not affect US food and energy security. However, rising energy and food costs in the United States have become two of the main drivers of inflation, which peaked at 40 years this month.

US Treasury Secretary Janet Yellen believes that the price increase is partly due to what the store called the unexpected “self-punishment”, and points out that US companies have left Russia completely to minimize the risk of breaking US rules. Yellen said she was “wrong” when she said that inflationary pressures would pass.

Seven foods have been hit by price increases this year. From sweets to vegetables, the USDA has a list of foods that will be more expensive this year. Russia’s invasion of Ukraine has led to a shortage of fertilizers, disrupting farming around the world and raising prices. The climate crisis has also worsened food supply due to unpredictable weather.

President Biden said on Wednesday that there was little he could do to reduce the cost of gasoline or food immediately, acknowledging that prices for these products would remain high as he worked to reduce other costs incurred by families. “There’s a lot going on right now, but the idea that we can click on switches, lower fuel costs is not likely in the near future. It’s not in terms of food either,” Biden said. The White House, where he held an event about the lack of infant formula.

Biden and his team are seeking to put a lot of emphasis on the economy in the coming weeks as the president looks set to demonstrate his commitment to curbing inflation, even as he says there is not much he can do. The president has instructed his aides to improve the government’s message as he watches his approval decline, the media say.

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