Will There Be a Recession in 2023?
Summary from the AllSides News Team
Since mid-2022, economists and business leaders have warned of a possible recession in 2023. Now, those predictions sometimes disagree, with some warning of economic danger and others predicting a milder economic outlook.
What They’re Saying: JP Morgan Chase CEO Jamie Dimon told CNBC (Center bias) on Tuesday that inflation could dry up Americans’ excess savings from the pandemic and “cause this mild to severe recession that people are worried about.” However, Moody’s Analytics chief economist Mark Zandi told CNN Business (Lean Left bias) that the country would avoid a recession, saying, “It’s going to be a struggle. It’s going to feel uncomfortable. But I think we are going to thread the needle.” Meanwhile, a survey published Monday found that 52% of economists believed a recession would begin in early 2023.
For Context: While the U.S. economy narrowly met the common definition of a recession in early 2022 — two consecutive quarters of GDP contraction — many fear a deeper downturn. This is partly because of the Federal Reserve’s interest rate increases, which aim to fight inflation by raising borrowing costs and slowing the economy down. Businesses, particularly in the tech industry, announced layoffs throughout the second half of 2022 to prepare for a reduction in demand.
How the Media Covered It: Coverage and perspectives were common across the spectrum, particularly in business outlets. Generally, left-rated outlets were more likely to feature positive economic predictions, and right-rated outlets were more likely to feature negative ones.
Featured Coverage of this Story
From the LeftAlmost everyone expects a recession. Could the economy avoid one?
Joe Shamie hears plenty of talk of a looming recession. But his business just isn’t feeling it.
Shamie expects a decent holiday season for his company, Delta Children, which sells strollers, cribs, bassinets and other baby furniture. He’s encouraged that global supply chains are clearing up and borders are gradually loosening. From his New York City headquarters, he has no plans to cut staff and would hire more people if the right candidates come along.
“People and businesses create their own self-fulfilling prophecy: you expect the worst, you end up...
From the CenterIs a recession coming or not? Here's what to look for in the economic data
There’s an old saying that a watched pot never boils, and that description seems to apply to recession risks right now.
Americans have been awaiting, and fearing, an economic downturn all year, and yet a prolonged slump still hasn’t arrived. It now seems highly unlikely that a recession will materialize before 2023, and maybe not even then.
Part of the problem: A lot of us are watching the wrong pots heat up.
Each time a negative economic report comes out, it fans the flames of recessionary worry, but a lot of...
From the RightThe US continues to teeter on the brink of economic turmoil
The U.S. economy is teetering on the brink of extreme turmoil, with several factors coming into play at the same time.
The financial markets are signaling recession. The U.S. Treasury Yield Curve is now inverted, meaning that “ short term interest rates are moving up, closer to (or higher than) long term interest rates. This has historically been a very reliable indicator of an upcoming economic recession. Since World War II every yield curve inversion has been followed by a recession in the following 6-18 months,” according to the Current Market Evaluation.