Analysts from JPMorgan Chase warned that the US economy is close to recession

    Source: Federal News Agency / Stepan Yatsko
    Source: Federal News Agency / Stepan Yatsko

    Washington, 2 July. Analysts at JPMorgan Chase & Co. worsened their forecast and warned about the “dangerous proximity” of the US economy to recession. It is reported by Bloomberg.

    Economists at JPMorgan Chase lowered their expectations for mid-year US economic growth due to slower consumer demand.

    “Our forecast is dangerously close to a recession. Nevertheless, we continue to expect economic growth. We believe that employers may not want to lay off workers, even during a period of low demand for products,” said Michael Feroli, chief economist at JPMorgan.

    In recent weeks, the possibility of a recession in the United States has been increasingly discussed by analysts on Wall Street, as the Federal Reserve (Fed) raises interest rates, and high inflation “eats consumer budgets,” the article notes. Most of them believe that the recession will not begin until early 2023. The Federal Reserve Bank of Atlanta lowered its second-quarter US GDP estimate to 2.1%, down from 1% in its previous June 30 forecast.

    Earlier it became known that the CEO of Tesla Elon Musk plans to cut 10% of jobs due to a possible recession in the US. In addition to him, similar pessimistic forecasts were given by the CEO of JPMorgan Chase & Co. Jamie Dimon and president of Goldman Sachs John Waldron. President of the U.S.A Joe Biden in turn refused to consider a recession in the United States inevitable.

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