Skip to content
Apply
Stories

What does the U.S. have to do to avoid a recession?

Is the U.S. economy headed into a recession? The question comes as consumer prices have climbed to their highest point in more than three decades—and as worries over inflation prompt a response from central banking authorities. The looming question also comes amid continued supply-chain disruptions brought on by the COVID-19 pandemic, which have been exacerbated by Russia’s war in Ukraine. A recessionary period, defined as two or more consecutive quarters of negative GDP growth, may be inevitable in the coming months as the Federal Reserve plans to raise interest rates in an effort to crack down on inflation, Northeastern economists say. 

“Unfortunately, we are staring down the barrel of a recession,” says Nancy Kimelman, assistant teaching professor in economics at Northeastern. That’s because the federal government’s aggressive response to soaring unemployment at the onset of the pandemic has accelerated inflation, she says. Those response measures, which included lowering interest rates to zero and stimulus funds to struggling Americans, among other policies, ultimately created more demand in the economy—and in particular, in the labor market—than can be sustained. 

Continue reading at News@Northeastern.

More Stories

Spain's Prime Minister Pedro Sanchez speaks in the Spanish Parliament in Madrid, May 22, 2024. European Union countries Spain and Ireland as well as Norway announced Wednesday May 22, 2024 their recognition of a Palestinian state. Malta and Slovenia, which also belong to the 27-nation European Union, may follow suit amid international outrage over the civilian death toll and humanitarian crisis in the Gaza Strip following Israel's offensive. (Eduardo Parra/Europa Press via AP)

Spain, Norway and Ireland recognize Palestinian statehood. How might the rest of Europe respond?

05.24.2024
NASHVILLE, TENNESSEE - OCTOBER 22: U.S. President Donald Trump and Democratic presidential nominee Joe Biden participate in the final presidential debate at Belmont University on October 22, 2020 in Nashville, Tennessee. This is the last debate between the two candidates before the November 3 election. (Photo by Jim Bourg-Pool/Getty Images)

Biden is losing (and Trump is gaining) support, especially among young voters, Northeastern-led research finds

05.24.2024

ShotSpotter improves detection and response to gunfire, but doesn’t reduce crime, Northeastern research finds

05.24.24
All Stories