Following a weak first-quarter performance, a widely followed economist predicts a recession in the United States. Steve Hanke informs his 628,600 Twitter followers that the country’s economic development has slowed dramatically in the first quarter of 2023.
The economy expanded 1.1% per year in the first quarter of this year, according to the Bureau of Economic Analysis (BEA), compared to 2.6% per year in the fourth quarter of 2023.
According to Hanke, the sharp decline in economic growth is primarily attributable to the Federal Reserve’s inability to regulate the money supply. “From 2.6% in the final quarter of 2022, US economic growth slowed sharply to 1.1% in the first quarter of 2023.” A US RECESSION is on its way due to the Fed’s refusal to pay attention to the money supply increase.”
According to Yahoo Charts, the money supply (M2) has risen from $15.41 trillion in 2020 to $20.80 trillion at the time of writing. During the same period, the Federal Reserve’s balance sheet more than doubled, rising from $4.14 trillion to $8.56 trillion. The President of the Minneapolis Federal Reserve Bank allegedly warned earlier this month that a recession is possible as the financial crisis continues to put pressure on the US economy.
According to Neel Kashkari, the Fed’s restrictive monetary policies during the last year may have been the spark for the US economy’s decline. “It is possible that our monetary policy actions, as well as the tightening of credit conditions as a result of the banking stress, will lead to an economic downturn.”
That could even lead to a recession; we need to reduce inflation… Your career chances will be limited if we don’t accomplish that.”
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