- Superpowers in danger?
- Is the US economy headed for recession?
- Seeing the economic situation, the citizens were taken aback
US Economy Slowdown: America is the largest economy in the world. But now her situation has become very bad. Any impact on her has far-reaching global consequences. Although the US economy has been doing well for some time, the turning point has been its ever-increasing debt. Inflation has increased significantly recently. To control this, the Federal Reserve raised interest rates in September. Another increase is expected in December. Why exactly is this situation standing” (Slowdown)
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Americans are extremely pessimistic about their economic situation. 41 percent of consumers believe their situation will worsen in the next 12 months. This number has tripled since the second quarter of 2024. Even during the 2008 financial crisis, only 23 percent were pessimistic about their future.
America's debt
Even in the 1970s and 1980s, when consumer price index (CPI) inflation was above 10%, people were not so pessimistic about their future. Although America is not currently in a recession, people are starting to feel the pinch. What's more, 31% of American consumers believe their financial situation will worsen over the next five years. This rate is double the rate in the 1980s.
America's debt has exceeded $40.5 trillion. In 1990 it was 3.2 trillion dollars. The situation has worsened to such an extent that a large portion of government revenue is being used to pay the interest on these loans. According to the first quarter data, US debt per capita was $224,000. This includes government, family and corporate loans.
Inflation conditions
Inflation in the country is likely to remain high for a long time. Fuel prices have significantly accelerated inflation recently. According to market forecasts, there is a 75% chance of an interest rate hike in December. The Fed refrained from raising interest rates at its recent meeting because of the midterm elections. Just a year ago, the market was expecting three interest rate cuts by 2026.
Crude oil prices
The mid-term elections will be held on November 3. It is believed that there may be new attacks on Iran after that. This is likely to further increase crude oil prices. Crude oil prices have already gained 14% in October. Brent crude rose 2.37% to close at $113.4 a barrel on Friday.
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