US nationals may have to bear the pain for some more time

Washington: The Chief of the US Federal Reserve, Jerome Powell, warned that the US people would have to suffer for some time given the flareup of inflation and the ongoing interest rate hike to prevent it. Inflation has flared up in the United States since last year and the inflation index reached a record 9% in June. To curtail this rising inflation, the Federal Reserve, the US Central Bank, increased the interest rate four times in the last five months. But it has not made a difference in inflation and the economy. On the contrary, the suffering of the people of the United States has increased.

In his speech at the Central Banking Conference on Friday, Powell hinted that the US economy would soon face a recession. The US economy will have to take some tough decisions to curb inflation. The governor of the Federal Reserve warned that the US people and industry would have to bear the pain after the increase in interest rates, along with the slowdown in growth and the decline in manpower.

Moreover, Powell also warned at this time that, unfortunately, there is a price attached to reducing inflation because if inflation is not brought under control, we will face greater pain. He also made it clear that the Federal Reserve will not change its policies until inflation is not under control, even if there is an increase in the suffering of the US population. Powell also said at this time that history has shown us that trying to change policies can have detrimental effects.

The people of the United States are also faced with the crisis of economic recession along with inflation. The US economy has contracted for two consecutive quarters. Technically, a decline in two consecutive quarters is a recession. Still, the Biden administration claims that there is no recession in the United States, citing various reasons. While President Biden and other officials consistently insist that there is no recession, the US public and industry are saying they are experiencing a deep recession.

In a survey conducted by the Stifel Financial group, more than 90% of executives in US companies have admitted that the country is in recession. Former economic advisers, economists and analysts in the United States also warned of economic recession. Many leading financial institutions, including the International Monetary Fund, have declared that the US economy is faced with the risk of recession. Statement of the Chief of the US Federal Reserve also endorses it. However, the Biden administration is aware that there is a huge political price attached to admitting that there is a recession in the United States. That is why the Biden administration is desperate to convince the US people that there is no recession. Some time ago, President Biden blamed the Ukraine conflict and Russian President Putin for inflation in the United States. The President of Russia countered that the United States is faced with this crisis due to the flawed policies of the US administration.