Economic Slowdown in USA: The effect of Corona epidemic and then increased inflation from Russia-Ukraine is not only on India, but America, which is called the world’s only superpower, is also struggling with this problem. There these days the level of inflation has reached the record level of the last 40 years. To save the situation from deteriorating, the Biden administration has taken the step of increasing interest rates. Big businessmen and economic experts believe that this step will help in controlling inflation, but due to less access to money, there will be a risk of global economic slowdown spreading in America and the world.
Corona and Russia-Ukraine war threatens recession
According to the report, Adena Friedman, CEO of Nasdaq, one of the world’s largest stock exchanges, says that the recession has not started yet, but the way it is being discussed, it can deepen doubts in the minds of people. Due to which business activities will be shocked and this can become a major reason for the start of the Global Economic Slowdown.
Microsoft co-founder Bill Gates is also worried about the signs of recession. They say that due to Corona, the economy of the world was going slow even before the last 2 years. Now the Russo-Ukraine war has done its rightful job. Due to this war, there has been a shortage of many essential things in the world, due to which the level of inflation has increased. To control this inflation, many countries of the world have increased their interest rates. Due to this, the risk of global economic slowdown is increasing in the world.
America’s economic slowdown will have a global impact
Lawrence Summers, a former US finance minister, is also expressing similar apprehensions. They say that whenever the unemployment rate is less than 4 percent and the inflation rate is more than 4 percent, then the world is in the grip of economic recession. This time also the situation is becoming similar. America has exceeded both these standards. In such a situation, there may be an economic slowdown in America for the next 2 years, which will affect the whole world.
Lloyd Blankfein, senior chairman of Goldman Sachs, told in an interview that he talked about the economic slowdown. He told that there is a risk but the Federal Reserve Bank can control it if it wants. For this, he will have to withdraw the increase made on interest rates. Also, the facility of loan on business activities will have to be made easy.
People’s jobs were lost due to such recession in 2008
Japan’s investment bank Namura has also expressed the possibility of an economic slowdown in America. The bank says that by the end of this year, a recession can start in America, which can affect not only America but all the countries of the world including India-China. There was a similar economic recession in the year 2008, due to which the demand in the world had reduced significantly. Due to this, people had to lose jobs on a large scale and economic activities were affected.
