Are we headed for a recession?
BIRMINGHAM, Ala. (WBRC) - Where is our economy going? Businesses are finally hiring again but inflation looks like it could remain an issue for several months.
Those I spoke with today tell me that a recession is definitely a possibility, but it’s far too early to say for sure. A lot of contributing factors have gotten us into this position. First, the trillions congress spent to try and keep the economy going during the pandemic.
That spending put a lot more money into the economy to be spent. Marshall Clay with the Welch Group tells me since then, the world has struggled balancing supply and demand with a lot of demand and not enough supply.
Inflation has sky rocketed, making everything more expensive.
Now the federal reserve is hiking interest rates to try and battle the issue.
“There is certainly an underlying core inflation issue but I think it is be interesting exacerbated by what’s going on globally. Particular in Russia and Ukraine. If you look at the commodities they provide to the local market it is really driving prices up everywhere,” said Clay.
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