Majority of Americans think nation is headed for recession, economists agree
cbsaustin.com
WASHINGTON (TND) — Eighty-five percent of Americans think the nation is headed for a recession, according to a newly released Quinnipiac poll.
Their pessimism is shared by some experts.
Stunning numbers from retail giants could be the economy's canary in a coal mine.
Target shares on Wednesday tanked 25%, which is the biggest drop since 1987.
Walmart also has taken the biggest hit in 35 years.
Some believe it's more evidence the country is headed for a serious economic downturn.
The Federal Reserve is working aggressively to prevent a hard landing for the economy.
Meanwhile, Treasury Secretary Janet Yellen, who as recently as October insisted inflation would be “transitory,” is now sounding direr.
Inflation remains at a 40-year high.
The national average price of gas topped out Thursday at $4.58 a gallon, another record that’s been broken every day this week.
Gas prices are not only hurting Americans but also eating away massive chunks of corporate profits.
President Joe Biden has been struggling to address soaring prices, while politicians play the blame game.
“The Democrats have wanted it to all be cost-side inflation that’s driving this because those are things that are out of their control," said Steven Kyle, an associate professor at Cornell College of Business School. "The Republicans said, 'No, you stimulated the economy too much. That’s what's causing it and you have to dial it back.' You know, both things can be true at the same time.”
Not everything is looking gloomy, as the unemployment rate is still low, and Americans continue to spend heartily.
cbsaustin.com
WASHINGTON (TND) — Eighty-five percent of Americans think the nation is headed for a recession, according to a newly released Quinnipiac poll.
Their pessimism is shared by some experts.
The bigger picture [is] we’re starting to see the tip of the iceberg of a problem, and the problem is a recession,” said Gene Munster, a managing partner at Loup on CNBC.
Stunning numbers from retail giants could be the economy's canary in a coal mine.
Target shares on Wednesday tanked 25%, which is the biggest drop since 1987.
Walmart also has taken the biggest hit in 35 years.
Some believe it's more evidence the country is headed for a serious economic downturn.
The Federal Reserve is working aggressively to prevent a hard landing for the economy.
Meanwhile, Treasury Secretary Janet Yellen, who as recently as October insisted inflation would be “transitory,” is now sounding direr.
Certainly, the economic outlook globally is challenging and uncertain and higher fuel and energy prices are having 'stagflationary' effects,” Yellen said at a news briefing.
Inflation remains at a 40-year high.
The national average price of gas topped out Thursday at $4.58 a gallon, another record that’s been broken every day this week.
Gas prices are not only hurting Americans but also eating away massive chunks of corporate profits.
We project that’s going to hit us about a billion dollars in incremental costs,” Brian Cornell, who is the CEO of Target, said in reference to sky-high fuel rates.
President Joe Biden has been struggling to address soaring prices, while politicians play the blame game.
“The Democrats have wanted it to all be cost-side inflation that’s driving this because those are things that are out of their control," said Steven Kyle, an associate professor at Cornell College of Business School. "The Republicans said, 'No, you stimulated the economy too much. That’s what's causing it and you have to dial it back.' You know, both things can be true at the same time.”
Not everything is looking gloomy, as the unemployment rate is still low, and Americans continue to spend heartily.