It’s Probable That There Will Be a Recession This Year, According to Summers

by | Apr 19, 2023 | Recession News | 18 comments

It’s Probable That There Will Be a Recession This Year, According to Summers




Former US Treasury Secretary Lawrence H. Summers reacts to US inflation data and explains why he believes a recession in 2023 is still likely. He speaks to David Westin on “Wall Street Week” on Jan. 13.

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As we approach the summer months, there is growing concern among economists and financial experts that the United States could be headed for a recession this year. While this may seem like an unwelcome prediction, there are several factors that suggest a recession is more likely than not.

Firstly, there has been a significant decline in global economic growth over the past year. Many countries are experiencing slower growth rates, and some are already in recession. This has been fueled by a number of factors, including trade tensions and uncertainty around Brexit. The ongoing trade war between the US and China has also had a considerable impact on the global economy.

Secondly, the US economy itself has started to show signs of weakness. Although the job market has remained strong, there has been a slowdown in economic growth. GDP growth slowed to just 2.2% in the first quarter of 2019, down from 2.9% in the same period last year. Additionally, there are concerns about mounting levels of household and corporate debt, which could have serious consequences for the economy if left unchecked.

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Thirdly, a number of key indicators are flashing warning signals. The yield curve, which compares short-term and long-term interest rates, has inverted several times over the past few months. This is often seen as a predictor of a recession, as it suggests investors are unsure about the future of the economy. Other indicators, such as declining manufacturing and business investment, also suggest that a downturn is on the horizon.

Finally, there is the impact of the ongoing trade war between the US and China. The two countries are among the world’s largest economies and their escalating trade dispute has had a significant impact on global financial markets. If the trade war continues, it could push the US into a recession, as it would likely result in higher prices for consumers and lower profits for businesses.

While no one can predict the future with certainty, it is clear that the United States is facing several challenges that could lead to a recession. As we head into the summer months, it will be important for policymakers and investors to closely monitor economic data and take steps to mitigate the risks of a downturn.

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18 Comments

  1. Workforce Workshop

    Why politicians are dodging the recession, when the US is going through it as we speak?

  2. Firewind II

    THAT's Larry Summers now??

  3. Anthony Russell

    Instead of trying to predict whether or not we’re going into more recession and keep losing money, a better strategy is simply having a portfolio that’s well prepared for any eventually, that’s how some folks' been averaging $150k every quarter according to Bloomberg.

  4. ID10T

    Larry Summers and David Westin show you what complete clowns they are with this clip. Why didnt David ask Larry this one question-

    when was the last time every Central Bank on earth had coordinated record low interest rates for over a decade and it was NOT a Depression-like economy?

    Anyone that says the economy may or may not will slip into a recession this year can be instantly ignored.

  5. Christian Johansen

    I'm so tired of hearing about the reopening of China as a catalyst for a new bull market. Look at China… they are drowning in problems. They are not going to save the world!

  6. Ari Gutman

    Crazy to think that we will have inflation for another year…

  7. Leinad

    Default= fear porn

  8. Leinad

    Yeah Ha! More free money comin!

  9. Leinad

    No shut up …im right amd i double down on my pricdiction

  10. Fuzzy Dice

    "These bottom liners aren't going to be interested in building much love into the system" – Terrence McKenna

  11. Simeone Barret

    America as we know it is finished. All indications point to 2023 being a year of severe economic pain across the country. Put that money to work right away to make it grow. I knew I had to make an investment. I never imagined that a few thousand dollars per month would add up. However, it is. I've made around $600k since 2020..

  12. Leslie Hatun

    In terms of a pause, that's inconsistent with the Feds policy at this time. Maybe when inflation hits 4% a pause may be considered.

  13. Tim.Vannice

    this was released last week Bloomberg

  14. memyselfeye Tallent

    I hate Larry the liberal with a passion, but he is right.

  15. John Dingle

    Fed's policies are simple. Fight inflation with deflation. Or fight deflation with inflation. You really can't do both.

  16. B dubb

    He means depression i think. We've been in a recession now for over a year with inflation around 20%. Yikes!!

  17. Joe C

    Larry! My nickel!

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