The late Nobel Prize-winning economist Paul Samuelson once quipped that Wall Street had predicted nine out of the last five recessions. This time, the stock market may be right.
The US economy is starting to show signs of strain under the weight of decades-high inflation and climbing interest rates — raising the risk of a downturn.
Investors are taking note, with equities nosediving this week as earnings gloom at retailers like Walmart Inc. and Target Corp. fueled the growing fears. And the trend could spell trouble for President Joe Biden, whose Democrats must defend thin Congressional majorities in November’s midterm vote.
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The US economy is starting to show signs of strain under the weight of decades-high inflation and climbing interest rates https://t.co/IfVW6MboaM
— Bloomberg (@business) May 20, 2022