Economist reveals when the US could see a recession
John Lonski on when a recession could be expected
Thru the Cycle President John Lonski argues as ‘stimulus is taken away,’ the U.S. economy will slow down and ‘with that the unemployment rate rises,’ which could lead to a recession based on historical patterns.
Thru the Cycle President John Lonski revealed on Wednesday when he believes a recession could be expected.
He argued on "Varney & Co." that as the substantial pandemic-era stimulus "is taken away," the U.S. economy will slow down and "with that the unemployment rate rises," which could lead to a recession, based on historical patterns.
A recession is a contraction in gross domestic product (GDP) activity, or economic output, for two consecutive quarters.
Lonski said he doesn’t anticipate the U.S. will experience a recession this year, but that it would more likely happen next year or in 2024.
In the span of just two years, Congress unleashed a torrent of federal money to shield the economy from the coronavirus pandemic, approving roughly $6 trillion in relief measures. Lawmakers approved about $2 trillion under Biden and $4.1 trillion under former President Trump, according to a COVID money tracker published by the Committee for a Responsible Federal Budget, a nonpartisan organization based in Washington.
OIL PRICES, INTEREST RATES, TAX HIKES ‘TRIO OF BAD NEWS' FOR ECONOMY, MARKET EXPERT SAYS
The majority of the money allocated for emergency spending — close to $4 trillion — stemmed from two pieces of legislation: the CARES Act, passed in March 2020, and the American Rescue Plan, passed in March 2021. The remaining money came from the Response and Relief Act (December 2020), Families First Coronavirus Response Act (March 2020) and the Paycheck Protection Program and Health Care Enhancement Act (April 2020).