Rising inflation and mortgage rates in the US threaten the American economy with recession DEA News”He interviewed experts from the USA.
“The scenario at the current rate is one of higher interest rates, higher prices and a possible recession, and it’s unlikely but not impossible,” said Redfin chief economist Daryl Fairweather.
Mortgage rates in the US rose to the highest levels in the last 12 years. Isabelle Trilbu Monlouis, professor of economics and entrepreneurship at Georgia State University, warns that record-breaking companies will have a chance to forego price cuts in the event of a recession.
“While the Fed will raise interest rates to cool the housing market and slow easy access to money, it is unclear whether companies convinced that the market can handle a given price will lower prices. For example, airlines introduced baggage fees to combat the 2008 recession and high fuel prices, but they haven’t gone away, have they? Monlouis explained.
In his view, American workers should not rely on wage increases that could absorb inflation.
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Source: Gazeta
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