US recession to ‘land’ as economic growth slows sharply: Economist Steve Hanke

Following a weak first quarter performance, a widely followed economist is predicting a recession in the United States. Steve Hanke told his 628,600 Twitter followers that the country’s economic development has slowed dramatically in the first quarter of 2023.

The economy grew 1.1% annually in the first quarter of this year, according to the Bureau of Economic Analysis (BEA), compared with 2.6% annually in the fourth quarter of 2023.

According to Hanke, the sharp decline in economic growth was mainly due to the inability of the Federal Reserve to regulate the money supply. “From 2.6% in the last quarter of 2022, US economic growth slowed sharply to 1.1% in the first quarter of 2023.” A US recession is on the way due to the Fed’s refusal to pay attention to increasing the money supply.”

According to Yahoo Charts, the money supply (M2) has increased from $15.41 trillion in 2020 to $20.80 trillion at the time of writing. During the same period, the Federal Reserve’s balance sheet more than doubled, increasing from $4.14 trillion to $8.56 trillion. The president of the Minneapolis Federal Reserve Bank allegedly warned earlier this month that a recession was possible as the financial crisis continued to weigh on the US economy.

According to Neel Kashkari, the Fed’s tight monetary policy over the past year may have been the trigger for the decline in the US economy. “There is a possibility that our monetary policy actions, as well as the tightening of credit conditions as a result of banking pressures, will cause an economic downturn.”

It can even cause a recession; we need to reduce inflation… Your career opportunities will be limited if we don’t achieve them.”