Bloomberg predicts when the US economy will begin to decline.

In an interview on CBS's "Face the Nation" program on July 9, US Treasury Secretary Janet Yellen said that Washington has not yet ruled out the possibility of the world's number one economy falling into recession.

The scenario predicts a US economic recession beginning in late 2023, coinciding with a period of moderate consumer spending decline. (Source: iStock)

According to her, moderate economic growth and persistently high inflation are currently acceptable in the US. Monthly job growth is slowing as expected after remaining high, and there is reason to believe in a solution to reduce inflation in the context of a strong labor market.

Meanwhile, according to an analysis by Bloomberg , the economic recession scenario in the US will begin in late 2023, coinciding with a period of moderate consumer spending decline.

Recent reports suggest that inflation in the US may continue to decline slightly in June, but underlying price pressures remain high, leading to the possibility that the Federal Reserve (Fed) will continue to raise interest rates this month.

Earlier, on July 7, Chicago Bank President Austan Goolsbee stated that US policymakers were on the right track to slow the pace of interest rate increases.

However, most members of the Federal Open Market Committee (FOMC) agreed to raise interest rates one or two more times this year.

Zanet Yellen also stated that although the Biden administration is considering additional controls on overseas investments, these will be limited in scope and will not significantly impact investments in China.

Source: https://baoquocte.vn/bloomberg-du-bao-thoi-diem-kinh-te-my-bat-dau-suy-thoai-234126.html