The country is heading towards a recession, at least according to almost half of the economists recently surveyed by the National Association for Business Economics. Some economists believe we are already in a recession.
47% of economists in the organization’s semi annual survey that was conducted in August felt that the recession will begin this year or by Q1 2023; 26% feel that the recession won’t hit until Q2 2023 or later; 19% reported that we are already in an economic recession.
A recession is defined by NABE as a “significant decline in economic activity that is spread across the economy and lasts more than a few months.” Although considered to be unofficial, the source is widely reported when it comes to recessions.
Ultimately, respondents’ wide spread sentiment about the FED’s inability to control inflation within the next two years is the reason for recession talk. The majority feel the country’s fiscal policy is “too stimulative.”