The superpower was driven by debt, but America could still escape recession
Global financial group Goldman Sachs sees a 25 percent chance that the US economy will collapse into recession within the next 12 months, instead of the previous 35 percent.
Company analysts changed their forecasts for the month of March.
They agreed that America and the world economy could be saved
An agreement was reached between US President Joe Biden and the Republican leader in the House of Representatives to allow an increase in the national debt level, thus averting the US debt crisis. International credit rating agency Fitch on Thursday downgraded the US issuer’s long-term credit rating to “AAA” to a “negative” outlook due to delays in talks on raising the government’s debt ceiling, which it said posed a default risk. Read more >>>
The national debt ceiling is of little use
Three months ago, after the bankruptcy of the Silicon Valley bank, the likelihood that the world’s leading economy would face an economic downturn in the coming year increased.
An increase in the national debt ceiling would only lead to a “slight decline in spending,” which could have an “almost neutral” effect on the budget over the next two years.
According to their calculations, the negative effects that affected the US financial system after the bank failures in the spring could reduce GDP by 0.4 percent.
According to Goldman analysts, the Federal Reserve, which plays the role of the US central bank, may decide to raise interest rates by 25 basis points in July, and the rate hike cycle may end in the range of 5.2-5.5 percent.
In its latest forecasts for April, the International Monetary Fund (IMF) estimated economic growth of 1.6% in the United States in 2023, which could drop to 1.1% next year.
They didn’t wait for Monday with bankruptcy, they can raise the debt ceiling
The law that allows the increase in the debt of the United States, which dreamed of it, entered into force. Read more >>>