High inflation and monetary tightening could break growth.
Credible voices, more and more numerous, announce a recession in the United States. While full employment reigns there again and the consensus of economists puts growth this year at nearly 3%, the prediction seems quite alarmist. According to a poll, 81% of Americans see this scenario materializing even before the end of the year.
For months the worst inflation for forty years has reduced their purchasing power. And since the recent sanctions imposed on Russia, they no longer believe that the spike in energy, food, rent and transport prices will dissipate over the summer. By announcing a long series of interest rate hikes, the Federal Reserve is trying to break the inflationary expectations that are fueling a spiral of wage, cost and price increases. Its leaders maintain that demand and hiring are strong enough to withstand these multiple turns of the screw. However, even…