It's time for On-Point, where we speak to experts to delve deeper into some of the key issues in the spotlight right now. Many predict a recession to hit in the U.S., which could certainly mean a ripple effect for economies around the world.
So how bad is the situation in the U.S., and is there any chance the world's biggest economy can avoid the worst? To get a look at the U.S. economy right now, we turn to Renee Bowen, Professor of Economics, at the University of California San Diego, School of Global Policy and Strategy. Good morning to you.
First off, a number of economists are predicting a recession to hit the U.S.. What are your thoughts on this? How likely is a recession?
The last time the U.S. slipped into a recession was December 2007,which lasted until June 2009. How does the situation that led to that recession compare to the situation in the U.S. now?
Some optimists believe that the U.S. could avoid a recession. What factors would allow for that?
One of the biggest factors leading to the huge slowdown in economic growth for the U.S., is the massive inflation the country is seeing right now. With the U.S. Fed increasing their benchmark key interest rates 75 basis points, and even more hikes ahead. Do you think it'll be enough to quell the inflation, and if so, how much longer until we start seeing the effects of that?
Thank you for your insights. Looking forward to speaking to you again in the future.