From President Biden to Elon Musk to Card B, many are wondering if — or when — a recession will hit the United States.
Last week, the stock market officially entered the bear market, a deadline for Wall Street to fall more than 20 percent from a high after the S&P 500 posted its worst week since the early days of 2020’s coronavirus pandemic. Inflation is at 40 year levels. Maximum, interest rates are rising rapidly and retail, job advertisements and the housing market are showing signs of an economic slowdown.
Bear markets are often accompanied by recessions, although one doesn’t cause the other. However, when investors are reluctant to invest in stocks, the main reason is often concern about the economy.
Here’s what people on Wall Street, the White House and elsewhere have been saying recently about the possibility of an economic recession.
President Biden: ‘Nothing is necessary in a recession’
President Biden said the recession was “not necessary” in an interview with the Associated Press last week and Monday in response to questions from reporters. “I spoke to Larry Summers this morning,” he said, referring to a former Treasury Secretary, “and there’s nothing necessary about the recession.”
Treasury Secretary Janet L. Yellen: “I don’t think a recession is necessary at all”
Treasury Secretary Janet L. Yellen reiterated the president’s points, saying over the weekend that a recession is not “necessary”. Interview with ABC. “However, he expects the economy to slow down,” he adds, “inflation is unacceptably high.”
Elon Musk: Recession ‘more likely than not’
Tesla CEO Elon Musk said on Tuesday that “at some point a recession is necessary.” More specifically, Bloomberg said during a speech at the Qatar Economic Forum, “I think it’s more likely than not that there will be a recession in the near future.” He also confirmed that Tesla would lay off about 10 percent of its salaried workforce.
Goldman Sachs: Recession risks ‘higher and more start-oriented’
A recession is becoming more likely, analysts at Goldman Sachs said in a report Monday. “We now see the risk of a recession as higher and more advanced,” they said, citing high inflation and energy prices. They have lowered their forecasts for economic growth but do not expect the economy to contract. They estimated there was a 30 percent chance of a recession next year, up from the previous 15 percent, and about a 50 percent chance in the next two years from the previous 35 percent.
Cardi B: “If you all think they’re explaining…”
Cardmy B, a Grammy winner, asked her 23 million followers on Twitter this month to reflect on the upcoming economic downturn: “When do you all think you’re going into a recession? “