Biden Now Facing U.S. Recession
As the American economy continues to barely stay above water, former Treasury Secretary Larry Summers is now warning that the United States could soon be facing a recession. Summers believe this to be the case since the Federal Reserve has taken a surprisingly long-delay to react to extremely high inflation.
In a recent conversation with the Bloomberg Economics podcast, Summers stated, “If I thought we could sustainably run the economy in a red-hot way, that would be a wonderful thing, but the consequence – and this is the excruciating lesson we learned in the 1970s – of an overheating economy is not merely elevated inflation, but constantly rising inflation. That’s why my fear is, that we are already reaching a point where it will be challenging to reduce inflation without giving rise to recession.”
Summers worked in both Bill Clinton and Barack Obama’s administration and is a Harvard Professor. Summers also has spent most of the 2021 year urging the Biden Administration to not take inflation lightly and warned them of the potential dangers the U.S. could face if nothing was done.
“We’ve got a fairly serious inflationary situation,” Summers stated. The cost of products jumped by 6.8% in November alone compared to the previous year and sadly there is no signs it will slow down.
If Biden doesn’t act immediately, whoever is in charge of the country in 2024 will be left to pick up the pieces of the Biden Administration and by then it might already be too late.