Economists from Dartmouth, UCL say recession by end of 2021 possible
BISMARCK, N.D. (KFYR) - Economists from Dartmouth College and University College London published research last week that indicates the United States could enter a recession by the end of 2021. Experts say the reason the economy has stayed strong throughout the pandemic so far is because of money from the federal government.
“With consumer demand waning, with part of that problem being the availability of supplies, and the threat of the Federal Reserve tapering its quantitative easing, the economy is set to slow. Because it’s not capable of standing on its own without Fed support. And that includes the federal government and the private bank called the Federal Reserve,” said Eugene Graner, president of Heartland Investor Services.
The economists that published the report highlighted “clear downward movements in consumer expectations” over the past six months. This is not reflected in the hiring situation, they say, likely because the federal government has played a big role in propping up the labor market.
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