Just as OPEC+ expected the world to witness an economic recession, which is the reason for the cut in oil production in the coming period, US President Joe Biden has acknowledged the possibility that the United States will witness an economic recession, given that if this happens, this the decline will be “minor”.
Biden said Tuesday in an interview with US news network CNN: “I don’t think there will be an economic downturn, and if there is an economic downturn, it will be very small … it’s possible. “
Biden’s acknowledgment that the world’s largest economy could face a recession comes after the International Monetary Fund called on central banks earlier Tuesday to “act decisively to bring inflation back to target.”
The IMF report says that to fight inflation, which is at its highest level since the early 1980s and fears to “take a foothold”, central banks must continue to raise interest rates.
Last Thursday, International Monetary Fund CEO Kristalina Georgieva urged central banks to “show more will to act now and together,” noting that “there is an urgent need to stabilize the economy.”
Inflation has increased due to the damage done to the global economy due to the Covid-19 pandemic and supply chain disruptions.
Inflation has worsened recently as a result of the Russo-Ukrainian war and its impact on food and energy prices.