Global Recession Is Coming
(RepublicanNews.org) – Americans aren’t the only ones dealing with high inflation rates, and the US isn’t the only advanced economy raising interest rates in an attempt to lower elevated prices. While the response might seem like the best course of action to bring down inflation, the United Nations (UN) is urging countries like the US to shift their policies. The UN Conference on Trade and Development (UNCTAD) warned in a recent report that if the world stays on this course, even worse conditions could be on the horizon.
— The Hill (@thehill) October 4, 2022
The UNCTAD warned the world is at the doorstep of a recession, which it says will cause more financial pain than the crisis in 2008 and the COVID-19 pandemic. However, the agency noted it won’t be developed countries that bear the brunt of the devastation. Poorer nations will suffer the most. UNCTAD explained the global economic slowdown will be the result of advanced countries attempting to douse the flames of inflation, asserting they must change their course of action.
The US plans to continue on its current path, despite the warning, until consumer prices are more manageable. Jerome Powell, Chairman of the Federal Reserve, claims an economic slowdown or recession is the lesser evil when compared to inflation.
The Secretary General of UNCTAD, Rebeca Grynspan, declared in a statement there was still time to reverse course and avoid recession, noting that “nothing is inevitable.” The Secretary General noted advanced countries have the tools they need to both bring down consumer prices and support the people in vulnerable nations. The question is whether any of these countries will heed UNCTAD’s warning.
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