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.
