London Daily

Focus on the big picture.
Tuesday, Jul 22, 2025

0:00
0:00

US recession whispers becoming a roar

The alarm over a looming recession is growing louder in the US, as the government struggles to control soaring prices, Politico reported on Tuesday.
“From Wall Street to Washington, whispers about a coming economic slump have risen to nearly a roar,” the publication writes, adding that the Federal Reserve’s “aggressive” policy sent stocks tumbling to their worst performance in decades and plunged consumer confidence to record lows.

Fed Chair Jerome Powell said last month that a recession was “certainly a possibility” and that the central bank wanted to “get inflation back down to 2%.” Powell’s comments followed a hike in interest rates by 75 basis points, the biggest increase in three decades. Wall Street’s benchmark for many stock funds, the S&P 500, reacted by losing 20% by the end of June, in what’s become in the worst half of a year for US stocks since 1970. The inflation rate reached a 40-year high of 8.6% in May.

According to Politico, the central bank’s apparent willingness to tolerate an economic downturn if it helps bring inflation under control doesn’t sit well with the American people. Critics cited by the publication claim the abrupt increases in borrowing costs will lead to a surge in lay-offs and “drive the economy off a cliff.”

Powell said last week that “overall, the US economy is well positioned to withstand tighter monetary policy.” According to Bloomberg, however, about a third of economists say a recession in the US is likely in the next two years.

The situation could be made worse by other factors, Politico says, such as the potential nosedive of housing prices or an escalation of the conflict in Ukraine, which could lead to further increases in oil and food prices.
Comments

Kieran 3 year ago
Listen if you have inflated wage demands, overpriced property, people not willing to do certain jobs, billions being poured into money pit war, totally divided America in political, governable, religious, ethnic, race and policy terms, what does one expect!!!
Anna 3 year ago
Well that is what you get when the central banks turn on the money printing press.. Everyone wanted free stemmie money well guess what, there is no free.

Newsletter

Related Articles

0:00
0:00
Close
US Treasury Secretary Calls for Institutional Review of Federal Reserve Amid AI‑Driven Growth Expectations
UK Government Considers Dropping Demand for Apple Encryption Backdoor
Severe Flooding in South Korea Claims Lives Amid Ongoing Rescue Operations
Japanese Man Discovers Family Connection Through DNA Testing After Decades of Separation
Russia Signals Openness to Ukraine Peace Talks Amid Escalating Drone Warfare
Switzerland Implements Ban on Mammography Screening
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
Pogacar Extends Dominance with Stage Fifteen Triumph at Tour de France
CEO Resigns Amid Controversy Over Relationship with HR Executive
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
US Revokes Visas of Brazilian Corrupted Judges Amid Fake Bolsonaro Investigation
U.S. Congress Approves Rescissions Act Cutting Federal Funding for NPR and PBS
North Korea Restricts Foreign Tourist Access to New Seaside Resort
Brazil's Supreme Court Imposes Radical Restrictions on Former President Bolsonaro
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Judge Criticizes DOJ Over Secrecy in Dropping Charges Against Gang Leader
Apple Closes $16.5 Billion Tax Dispute With Ireland
Von der Leyen Faces Setback Over €2 Trillion EU Budget Proposal
UK and Germany Collaborate on Global Military Equipment Sales
Trump Plans Over 10% Tariffs on African and Caribbean Nations
Flying Taxi CEO Reclaims Billionaire Status After Stock Surge
Epstein Files Deepen Republican Party Divide
Zuckerberg Faces $8 Billion Privacy Lawsuit From Meta Shareholders
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
SpaceX Nears $400 Billion Valuation With New Share Sale
Microsoft, US Lab to Use AI for Faster Nuclear Plant Licensing
Trump Walks Back Talk of Firing Fed Chair Jerome Powell
Zelensky Reshuffles Cabinet to Win Support at Home and in Washington
"Can You Hit Moscow?" Trump Asked Zelensky To Make Putin "Feel The Pain"
Irish Tech Worker Detained 100 days by US Authorities for Overstaying Visa
Dimon Warns on Fed Independence as Trump Administration Eyes Powell’s Succession
Church of England Removes 1991 Sexuality Guidelines from Clergy Selection
Superman Franchise Achieves Success with Latest Release
Hungary's Viktor Orban Rejects Agreements on Illegal Migration
Jeff Bezos Considers Purchasing Condé Nast as a Wedding Gift
Ghislaine Maxwell Says She’s Ready to Testify Before Congress on Epstein’s Criminal Empire
Bal des Pompiers: A Celebration of Community and Firefighter Culture in France
FBI Chief Kash Patel Denies Resignation Speculations Amid Epstein List Controversy
Air India Pilot’s Mental Health Records Under Scrutiny
Google Secures Windsurf AI Coding Team in $2.4 Billion Licence Deal
Jamie Dimon Warns Europe Is Losing Global Competitiveness and Flags Market Complacency
South African Police Minister Suspended Amid Organised Crime Allegations
Nvidia CEO Claims Chinese Military Reluctance to Use US AI Technology
Hong Kong Advances Digital Asset Strategy to Address Economic Challenges
Australia Rules Out Pre‑commitment of Troops, Reinforces Defence Posture Amid US‑China Tensions
Martha Wells Says Humanity Still Far from True Artificial Intelligence
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
U.S. Resumes Deportations to Third Countries After Supreme Court Ruling
Excavation Begins at Site of Mass Grave for Children at Former Irish Institution
×