The economy hasn't been on the right track for quite some time. Since May 2021, inflation has been a defining factor of the US economy.

It's caused prices in all areas of American society to go up. Just recently, the United States Postal Service announced that it's going to be raising prices as well. Rideshare and delivery companies have likewise increased their costs.

Last month, Americans were faced with the bad news of higher interest rates.

The Federal Reserve stated the hike in interest rates was happening due to inflation; likewise, the Federal Reserve remarked that more interest rate increases could happen if inflation demands it.

Now, economists are warning that a recession may be on the horizon for the United States next year.

The possibility of a recession in 2023

According to Deutsche Bank economists, inflation and skyrocketing prices have reached a point where the nation is heading towards a recession.

Higher interest rates play a role in this as well. Given where the US economy currently stands, economists are warning that employers are going to try cutting back on spending. Naturally, American workers will bear the brunt of this.

More predictions from economists warn that by the time 2023's last quarter rolls around, unemployment will surpass the 5% mark. There's also the expectation that this recession will bleed into early 2024 as well.

Meanwhile, the Federal Reserve has suggested that it can help lower inflation without taking the economy down in the process.

No word from the White House

At this time, the White House has not reacted to the aforementioned predictions by Deutsche Bank economists.

However, the Biden administration is certainly working to get more spending passed into law. The new spending package that the White House wants to be passed for the second round of COVID booster shots comes at the worst possible time.

If America even has a chance of avoiding a recession, passing another spending bill at this time will undoubtedly kill that chance.

Inflation, to this day, is a very big reason why Democrats are looking at serious losses during this year's midterm elections. If a recession does occur next year, this will make Biden's chances of keeping the White House even smaller.