According to NY economist 'Doctor Doom,' a terrible US recession cannot be stopped from coming. It was brought about by the US government's slew of wrong decisions that brought America to rampage inflation after forty years.
The US Will Be in Recession
The well-known economist Nouriel Roubini warned of bad news as the Fed attempted another rate hike, reported RT.
Roubini stated that the global economy is in shock due to the severe economic downturn and spectacular stock market crash expected to occur at the end of 2022. This pessimistic forecast was broadcast on Monday, noted Daily Caller.
The US and global economies will be hit by the economic crash, which is expected to last until 2023, and the S&P 500 can slump by 30% to 40%, Roubini mentioned in an interview quoted by Bloomberg.
Such speculation came about as the Federal Reserve started a two-day discussion on policies, as central bankers are expected to declare the slated hike on Wednesday.
'Doctor Doom' Explains What Happens Next
Due to the immense debt of firms and governments having only an economic downturn, it cannot be avoided.
He also stated that the rising rate of debt servicing would significantly increase; additionally, agencies and entities that have become almost zombie-like due to economic storms will perish. Next is who will survive the economic culling.
An economic expert stated that the Federal Reserve's target inflation rate of 2% is nearly impossible to achieve and that a hard landing is unavoidable.
NY economist Roubini anticipates further rate hikes in the following months, helping to bring the federal funds rate nearer to 5%, as even the Fed continues to struggle to contain rising prices and the coming US recession.
Supply upsets from the disease outbreak, the dispute between Russia and Ukraine, as well as China's zero COVID zero-tolerance policy have all been identified as the causes of greater expenses and lower economic expansion.
Roubini stated that it would be brief; however, it would be terrible and ugly, with no one escaping. He forecasted the 2008-09 financial crisis and was later nicknamed "Doctor Doom" by Wall Street.
Survey Shows the US Has a Bad Economy
According to a recent poll, 72% believe the United States is heading in the wrong direction, per Fars News.
Based on an Associated Press-NORC Center for Public Affairs Research survey, a vast majority of Americans are discontented with the situation of the economy.
Other stats indicate that 29% of US adults think the economy is performing well, even as 71% believe it performs shoddily. As said by pollsters, roughly 27% of Americans are happy and content with the political and economic course taken by President Joe Biden's presidency, even as 72% think that things are taking a wrong turn.
Researchers noted that, based on poll results, the president's approval rating had risen slightly, but fears of a larger crisis remain. Only 38% vote in favor of Biden's economic leadership, even though 53% are uncomfortable with how he has managed to rant and rave about inflation.
NY economist 'Doctor Doom' predicts a looming recession and does not sugarcoat like the government, trying to diffuse fears, especially with the midterms coming.
