Recession Likely This Year, Economists Predict In Survey – WSJ Report
The US will be pushed by higher interest rates economy into a recession According to a survey by academic and business economists, it was the best year so far.
The Wall Street Journal reports A poll found that economists place the likelihood of a recession over the next 12 month at 61%. That’s down slightly from 63% in October’s WSJ survey. However, both numbers are historically high despite not being in recessions.
More information from Deadline
Hopes that the Federal Reserve’s manipulation of interest rates could create a “soft landing” for the economy aren’t present for three-quarters of the surveyed. Although inflation is decreasing month-to-month (while prices remain more than 13% above when the Biden administration took over), economists predict that the inflation rate will drop from 6.5% to 3.1% by December.
According to the survey, economists believe that the recession will be short-lived and relatively mild. However, they expect job losses to accelerate by the end of the second quarter. That sentiment is down markedly from October’s survey of economists.
Inflation control will be difficult in the housing sector. Health care and personal services are second and third.
The Journal surveyed 71 economistsWhile not every economist answered every question, it was clear that they were all in agreement. The survey was conducted between Jan. 6-10.
The Best of Deadline
Register now Deadline’s Newsletter. Follow us on Twitter for the most current news Facebook, TwitterAnd Instagram.