November 28, 2022
'I firmly believe that there will be an economic recession in the United States within the next 18 months', said the former US Treasury Secretary.

‘I firmly believe that there will be an economic recession in the United States within the next 18 months’, said the former US Treasury Secretary.

That’s what 10 out of 10 economists say America It is expected to experience a slowdown in the coming months. A week earlier, the country’s Gross Domestic Product (GDP) data had already been announced Depression Tech – That means two consecutive quarters of economic decline.

Also, this Thursday (4), former US Treasury Secretary Lawrence Summers Expert XP 2022 audience is strengthened by this prediction. “I could be wrong, but I’m pretty sure there will be a recession within the next 18 months,” the economist said.

The question that remains is what will the Federal Reserve (Fed) do to create this recession? How much should interest rates rise — and for how long?

Summers criticized Federal Reserve Chairman Jerome Powell’s recent statements as “analytically indefensible.” Last week was memorable. Powell said recent monetary policy tightening has driven interest rates toward neutrality.

“I was really surprised when I heard what Powell said,” Summers said.

The former US Treasury secretary scoffed at the Fed’s belief that it could eliminate inflation without raising interest rates above 3 or 4% a year.

“Then I saw that we would be blessed with Serena Williams. I was hoping to play tennis with her and win three games. I could hope for that, but it’s not a hope based on reality,” Summers said, drawing laughter from the audience.

The economist was also critical of the central bank’s progressive agenda throughout 2020 and 2021, when the central bank took a more hawkish stance on the environment and wealth distribution.

“They talked about everything except price stability. Starting in November of last year, the tone changed to, ‘Please, God, don’t remember us as the people of the 1970s,'” Summers said.

According to the economist, a few decades ago there was hope that Latin America would become like North America. But, according to the economist, the opposite happened: North America became like Latin America.