Sun 29 January 2023 ▪ 14.00 ▪
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However, the finance minister ruled out signs of a recession in October. Three months later, it revises its positions on this issue. We explain the reasons to you.
Fear of an economic recession in the United States
In August, Jerome Powell, the head of the Fed, declared that “ the US economy is in recession “. An opinion shared by the CEO of JP Morgan a few months later. He even suggested creating a blockchain-based payment solution to fix it.
” Janet Yellen, Treasury Secretary, says the US economy is at risk of entering a recession. »
In an interview with Bloomberg, Treasury Secretary Janet Yellen said she will not minimize the risk of recession “. To be sure, the FED has raised its key interest rate on many occasions, resulting in fine inflation and employment statistics. But for Ms. Yellen, the economic slowdown is definitely here.
In fact, Janet Yellen admits not finding “ real result, unraveling economic activity “, despite:
- the growth of the US economy at a rate of 2.9% in the fourth quarter of 2022;
- the increase in personal consumption of 2.1%;
- the 0.8% increase in consumer and business spending;
- etc
All this does not bode well in the eyes of the great American financier. For her, there is a 65% chance that a recession will occur in the near future.
Janet Yellen, Elon Musk and other troubled personalities
The Federal Reserve’s repeated rate hikes also worry Elon Musk. Because there were about 4 increases of 75 basis points, and another of 50 basis points.
The Tesla boss has never stopped warning the FED about the risks of inflation due to his anti-inflation solution. More prescient than the other heads of American companies about the difficulties ahead, the billionaire will choose to reduce costs at his production sites for electric cars.
Jamie Dimon, for his part, predicts an interest rate overrun of 5%. Inflation is still very high.
Will the recession have an impact on the cryptocurrency market? Some analysts think so. Moreover, the crises experienced by the major crypto exchanges, the layoffs made at the level of companies like Coinbase, and also the volatility of its assets demotivate investors.
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The blockchain and crypto revolution is underway! And on the day when the effects will be felt on the most vulnerable economy in this world, against all hope, I will say that I had something to do with it