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This is How Recession May Hit the US

Well, first things first. The US is not facing recession as yet, and if the reports are to be believed, it may not hit it anytime soon. If the corrective actions are taken just in time, there may be ways to help avoid it. However, over the last two weeks or so – the apprehensions about the recession have grown manifold.

The United States economy is currently growing at a 2 percent rate. The job additions are happening at a steady rate. However, if at all, the recession does hit the US economy, how will it be?

One of the huge causes could be a trade war that the Trump administration has been involved in. This has been sending wrong signals in the business circles. The corporate sector has been softening in a softer manner. According to Tara Sinclair, an economist at the George Washington University, “It is potentially a self-inflicted-wound type of recession,… depends on many other characteristics of the economy and the policy response thereafter.”

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The major cause could be business investment spending. Then there is the economy of China and other Asian nations, which is getting weaker. This has been partly due to the ongoing trade war. The trade war has limited most of the global firms, and most of them have been finding it difficult to plan their operations. America is seen to be keen on escalating trade conflicts rather than attempting to resolve them. Investors find it difficult to assess whether the tariffs will go up or be discontinued.

“You end up paralyzed. You have to make plans, but there is a risk all over the place, so businesses get cautious and hold back on investment.” Is how Phil Levy, a former trade official in the George W. Bush administration and a chief economist at Flexport claims.

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Alina Parker

Alina Parker

Alina has been working as a journalist for various print-based magazines for around 4 years now. She is the one who initiated newbulletins.com after quitting her day job. She brings together substantial news from the Business industry. However, she likes to cover local US news as well. So, here she writes business and General News headlines. Apart from all these writing and journalism stuff, she is a fitness freak and takes care of her diet and exercise routine quite well. She has two kids: a son and a daughter whom she loves a lot. She spends a lot of time with her family.

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