The U.S. economy is currently battling with the double whammy of red-hot inflation and consecutive rate hikes. While investors are awaiting the July job report, economists expect 258,000 jobs were added last month, down from 372,000 in June. Moreover, Wells Fargo Investment Institute expects unemployment to reach 4.3% by the end of 2022.
According to veteran economist Mohamed El-Erian, the risk of a recession “is getting higher and higher.” However, he added that productive fiscal intervention and increased labor force participation could prevent a major setback for the U.S. economy.
