The multi-decade high inflation and the Fed’s aggressive moves to curb it have increased concerns over a possible recession. The Federal Reserve, in its July policy meeting, announced its second consecutive 0.75 percentage-point interest rate increase to tame the surging inflation.
Moreover, after declining in the first quarter, the U.S. economy contracted by 0.9% in the second quarter, fueling the recession fears. Furthermore, Mayor Eric Adams contradicted President Biden’s claims that the country is doing good by commenting, “Wall Street is collapsing; we are in a recession.”
