US economy will collapse soon- Economist Nouriel Roubini concludes -

Washington: Economist Nouriel Roubini has concluded that the US economy will soon collapse due to inflation flareup, rising unemployment and reduced production. He further warned that interest rate hikes by the Federal Reserve to curb inflation would increase the debt burden and hamper economic growth. Roubini had earlier predicted an economic recession in 2008-09. Therefore, this warning given by him regarding the US economy is attracting the attention of the whole world.

The Federal Reserve may have to raise interest rates to five per cent to curb inflation. If the Fed makes such a decision, the economic growth of the United States will come to a standstill. Moreover, unemployment will increase massively and the severity of the debt crisis will increase too. Roubini warned that the stock, bond, and home loan markets would collapse. US economists also warned that if the Federal Reserve withdraws from the policy of increasing interest rates, inflation in the United States will be out of control.

Moreover, efforts were being made by the Federal Reserve to prevent a recession. But Rubini also claimed that the Federal Reserve itself would take the US economy towards recession due to the factors like Coronavirus and inflation. He pointed out that the combination of problems in the supply of essential products and the financial crisis due to the debt burden is dangerous for the economy. The US economy has registered a negative growth rate for two consecutive quarters in 2022. Although this is an indicator of economic recession, the Biden administration in the United States is not ready to accept it. But many leading economists and analysts, including Roubini, point to the danger by saying that the US economy is in recession.

Meanwhile, there are indications that the European economy is also heading into a recession along with the United States. Bloomberg analysts have warned that Germany will not be able to avoid economic recession no matter how much financial aid is announced to prevent the crisis in the fuel and energy sector. Two days ago, Germany announced a package of 65 billion Euros to avert a crisis in the energy sector.