(NPR) Why there are growing fears the U.S. is headed to a recession

As employers scramble to find scarce workers, they’re bidding up wages, and that’s helping to push inflation even further above the Fed’s target of 2%.

Inflation hits another 40-year high. It’s bad, but older folks say they’ve seen worse
As a result, economist Matthew Luzzetti believes the Federal Reserve will have no choice but to crack down hard, with significantly higher interest rates.

Luzzetti predicts that those aggressive rate hikes will push the economy into a mild recession by late next year.

“It’s probably surprising to be talking about recessions at this point, given the momentum that we’ve seen, particularly in the labor market,” says Luzzetti, chief U.S. economist for Deutsche Bank.

“The ultimate conclusion is that we are having very strong growth, but it is inflationary growth,” he adds.

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Posted in America/U.S.A., Economy, Uncategorized