U.S. Markets closed
  • S&P 500

    3,911.74
    +116.01 (+3.06%)
     
  • Dow 30

    31,500.68
    +823.32 (+2.68%)
     
  • Nasdaq

    11,607.62
    +375.43 (+3.34%)
     
  • Russell 2000

    1,765.74
    +54.06 (+3.16%)
     
  • Crude Oil

    107.06
    +2.79 (+2.68%)
     
  • Gold

    1,828.10
    -1.70 (-0.09%)
     
  • Silver

    21.13
    +0.09 (+0.42%)
     
  • EUR/USD

    1.0559
    +0.0034 (+0.3273%)
     
  • 10-Yr Bond

    3.1250
    +0.0570 (+1.86%)
     
  • Vix

    27.23
    -1.82 (-6.27%)
     
  • GBP/USD

    1.2270
    +0.0009 (+0.0736%)
     
  • USD/JPY

    135.2100
    +0.2770 (+0.2053%)
     
  • BTC-USD

    21,362.17
    +149.31 (+0.70%)
     
  • CMC Crypto 200

    462.12
    +8.22 (+1.81%)
     
  • FTSE 100

    7,208.81
    +188.36 (+2.68%)
     
  • Nikkei 225

    26,491.97
    +320.72 (+1.23%)
     

U.S. economy traveling 'very close to the edge' of a recession, experts say

·1 min read
Stock trader.
Stock trader. TIMOTHY A. CLARY/AFP via Getty Images

A growing number of banks and economists are warning that the U.S. economy could be heading toward a recession in the next year, as financial markets take a hit amid an influx of "economic pessimism," The Washington Post reports.

Over just the past week, the Post notes, an ex-Goldman Sachs chief executive warned of the "very, very high risk of recession," while Wells Fargo CEO Charlie Scharf said there was "no question" a downturn is coming. Former Federal Reserve chair Ben Bernanke even brought up the dreaded prospect of stagflation, in which a slowing economy meets high inflation.

The remarks echo those made by Deutsche Bank back in April, when the bank's economists predicted that a "deep recession will be needed to bring inflation to heel."

"Recession risks are high — uncomfortably high — and rising," Mark Zandi, chief economist at Moody's Analytics, told the Post. "For the economy to navigate through without suffering a downturn, we need some very deft policymaking from the Fed and a bit of luck."

"We're traveling very close to the edge," he added.

Fortunately, Treasury Secretary Janet Yellen seems to think a so-called "soft landing" is still possible (albeit hard to navigate).

"I think it's conceivable there could be a soft landing. It requires both skill and luck ... I hope that's the case, but this is a very difficult economic situation," Yellen told reporters in Germany on Thursday, per the Post. "There's a lot going on ... It's not a straightforward matter."

You may also like

College student who delivered baby before graduation surprised with ceremony at hospital

Prominent Russian military analyst slams Ukraine invasion on state TV, backpedals 2 days later

Elon Musk reportedly offered to trade a horse for an erotic massage, leading to $250,000 harassment payoff