World's biggest economy, the United States, is dangerously close to recession

BATTLEFORWORLD.COM | July 2, 2022: JPMorgan Chase announced on Friday that it’s slashing the growth forecast for the US as consumers hold back spending. Revising its midyear growth outlook for the US, sharply lowering expectations for the second-quarter annual real GDP growth to 1%, from the previously forecasted 2.5%.

But analysts at JPMorgan said that the growth is expected to tick up to 1.5% in the final three months of the year, increased from strong car production and lower inflation. And the downside comes amid tightening of monetary policy, from the US Federal Reserve responding to inflation with aggressive interest rate hikes.

The gloomy forecast is accompanied by the influx of weaker data earlier, the last week in June, showing that US consumer spending was lower than expected in May, as motor vehicles remained scarce. At the same time, higher prices are forcing consumers to cutbacks on purchases of other goods.

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