American household debt rose $320 billion in 2022, marking one of the highest <a href="http://dailywire.com/topic/inflation" target="_blank" rel="noopener">increases</a> over the past two decades and reaching the highest level since the 2008 financial crisis.
Households owe a combined $17 trillion as a result of their mortgages, student loans, credit cards, and auto loans, according to an <a href="https://wallethub.com/edu/d/household-debt-report/120725" target="_blank" rel="noopener">analysis</a> from WalletHub. Current debt levels are approaching the $18 trillion held by households in 2008, the year in which the American housing market collapsed, and the world was plunged into a severe <a href="http://dailywire.com/topic/recession" target="_blank" rel="noopener">recession</a>.
The typical American household had nearly $142,700 in debt at the end of 2022, much of which came from an average of $100,700 in mortgage debt. An average auto loan balance of $13,100 and an average student loan balance of $13,500 composed much of the remaining balance. A separate <a href="https://wallethub.com/edu/cc/credit-card-debt-study/24400" target="_blank" rel="noopener">study</a> published by WalletHub last month indicated that average credit card debt increased from $8,500 in the first quarter of 2021 to $9,300 in the third quarter of 2022.
The increased debt levels come as inflationary pressures continue to affect consumers. Inflation reached a 6.4% year-over-year rate as of January 2022, according to a <a href="https://www.dailywire.com/news/inflation-rises-more-than-expected-in-january-after-biden-claimed-prices-are-coming-down" target="_blank" rel="noopener">report</a> released by the Bureau of Labor Statistics last week; prices for groceries, energy, and other necessities rose even as inflation continued to fall from the 9.1% year-over-year rate recorded in June 2022.
Overall food inflation reached 10.1% last month, considerably exceeding the 6.4% headline inflation rate. The national average price of gasoline is currently $3.39 per gallon, constituting a 42% increase since President Joe Biden assumed office in January 2021, according to <a href="https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&amp;s=EMM_EPMR_PTE_NUS_DPG&amp;f=W" target="_blank" rel="noopener">data</a> from the Energy Information Administration.
During his recent State of the Union address, Biden asserted that inflation is “coming down” despite the persistently high costs for critical products. “Inflation has been a global problem because of the pandemic that disrupted supply chains and Putin’s war that disrupted energy and food supplies,” he said. “But we’re better positioned than any country on Earth.”
The commander-in-chief also <a href="https://www.dailywire.com/news/biden-paints-rosy-posture-on-the-economy-before-state-of-the-union-heres-the-real-story" target="_blank" rel="noopener">claimed</a> ahead of his speech that the United States had witnessed the “fastest gas price decline in eight years” and annualized headline inflation which has declined for “six months” due to his economic policies. Both assertions ignored the reality that energy costs and overall price level increases were much lower before he assumed control of the Oval Office.
Meanwhile, data indicate that Americans continue to spend beyond their means on some products despite the economic pressures, relying upon a combination of consumer debt and savings accumulated during the lockdown-induced recession. The average amount of debt among those who spent beyond their means during the most recent holiday shopping season rose to $1,549, marking a 24% increase from the previous year, according to a <a href="https://www.dailywire.com/news/some-consumers-financed-holiday-spending-with-record-amounts-of-debt" target="_blank" rel="noopener">survey</a> from LendingTree. The percentage of debtors who expect to take five months or more to pay off their debt rose from 28% to 37%.
The total level of consumer loans increased from $1.5 trillion at the beginning of the Biden administration to $1.8 trillion, according to <a href="https://fred.stlouisfed.org/series/CONSUMER" target="_blank" rel="noopener">data</a> from the Federal Reserve. The personal savings rate has dropped from 20% to slightly more than 3% over the same period, according to <a href="https://fred.stlouisfed.org/series/PSAVERT" target="_blank" rel="noopener">data</a> from the Bureau of Economic Analysis, marking a significant decline from typical rates witnessed before the lockdown-induced recession.

Savings from broken piggy bank.

Household Debt Soars To Highest Level Since 2008 Financial Crisis

Household Debt Reaches Highest Level Since 2008

Economy

Inflation

Recession

U.S.

Americans are more pessimistic about their finances than at any time since the Great Recession as <a href="http://dailywire.com/topic/economy" target="_blank" rel="noopener">economic</a> challenges such as <a href="http://dailywire.com/topic/inflation" target="_blank" rel="noopener">inflation</a> persisted throughout the past year.
Some 50% of respondents to a Gallup <a href="https://news.gallup.com/poll/469898/half-say-worse-off-highest-2009.aspx" target="_blank" rel="noopener">survey</a> said they are “financially worse off” compared to one year ago, while 35% believe they are “financially better off,” marking the most dismal results for the poll since the economy crashed in 2008 and 2009. Lower-income Americans were the most likely to report that they have been worse off since last year. Approximately 61% reflected pessimism about their current finances in 2023, an increase from 41% in 2022.
There is a clear partisan divide with respect to perceptions of financial well-being: 61% of Republicans and 37% of Democrats say they are worse off. However, Americans tend to offer a more optimistic view of their finances under administrations that match their party preferences.
The results come after a volatile year throughout which the economy was throttled by inflationary pressures, labor shortages, and supply chain bottlenecks, contributing to negative economic growth in the first two quarters of last year. Year-over-year headline inflation was charted at 6.5% in December 2022, according to <a href="https://www.dailywire.com/news/the-tide-has-turned-inflation-sees-largest-drop-since-2020-lockdowns" target="_blank" rel="noopener">data</a> from the Bureau of Labor Statistics, marking a decrease from the 9.1% inflation recorded in June 2022.
President Joe Biden noted during his State of the Union <a href="https://www.whitehouse.gov/briefing-room/speeches-remarks/2023/02/07/remarks-of-president-joe-biden-state-of-the-union-address-as-prepared-for-delivery/" target="_blank" rel="noopener">address</a> on Tuesday that inflation, charted at 1.4% in the month before he assumed office, is presently on the decline. “Inflation has been a global problem because of the pandemic that disrupted supply chains and Putin’s war that disrupted energy and food supplies. But we’re better positioned than any country on Earth,” he commented. “Food inflation is coming down. Inflation has fallen every month for the last six months while take home pay has gone up.”
Even as nominal wages rose amid companies hiking pay to attract more employees, the country nevertheless witnessed a decrease in real wages of 1.7% between December 2021 and December 2022, according to <a href="https://www.bls.gov/news.release/realer.htm#:~:text=Real%20average%20hourly%20earnings%20decreased,weekly%20earnings%20over%20this%20period." target="_blank" rel="noopener">data</a> from the Bureau of Labor Statistics. The latter metric considers the effect of inflation on household purchasing power.
The pessimism regarding current finances also follows one of the <a href="https://www.dailywire.com/news/stocks-had-their-worst-year-since-2008-after-biden-boasted-about-their-performance" target="_blank" rel="noopener">worst</a> years for the stock market in modern history. The S&amp;P 500 Index dropped 20% last year, rivaling the 37% decline witnessed in 2008 amid the collapse of the banking system, as well as the 12% and 22% declines witnessed in 2001 and 2002 amid the dot-com bubble. Retirement account values, therefore, <a href="https://www.dailywire.com/news/stocks-had-their-worst-year-since-2008-after-biden-boasted-about-their-performance" target="_blank" rel="noopener">plummeted</a> 25% for the first three quarters of the year.
Respondents to the Gallup survey maintained a fair degree of optimism regarding their future financial prospects. Some 60% believe their finances will be “better off” one year from now, while 28% believe their finances will be “worse off.” Gallup said Americans “remain optimistic about the year ahead for their financial situations, which they typically are, almost regardless of recent economic conditions.” Continual optimism that translates into strong consumer behavior could “help to minimize or avert an economic recession.”
The economic challenges have prompted most economists to forecast a recession for this year, although many still predict the United States can avoid a contraction. Bank of America Chief Investment Strategist Michael Hartnett said in a <a href="https://business.bofa.com/en-us/content/year-ahead-2023/investment-market-outlook-forecasts.html" target="_blank" rel="noopener">report</a> that a recession would occur in the first half of the year before markets attain a “much more solid footing,” while an <a href="https://www.dailywire.com/news/economists-predict-whether-2023-will-see-a-recession" target="_blank" rel="noopener">outlook</a> from Goldman Sachs Chief Economist Jan Hatzius noted analysts at the company believe “there are strong reasons to expect positive growth in coming quarters.”

Consumer Prices See Largest Increases In 30 Years

More Americans Say They Are Worse Off Financially Than Any Other Time Since The Great Recession

More Than Half Of Americans Say They Are Worse Off Financially

Economics

Poll

Officials at the <a href="http://dailywire.com/topic/federal-reserve" target="_blank" rel="noopener">Federal Reserve</a> announced a 0.25% increase in the target <a href="http://dailywire.com/topic/interest-rates" target="_blank" rel="noopener">federal funds</a> rate, marking a slowdown from previous 0.75% and 0.5% rate hikes meant to combat <a href="http://dailywire.com/topic/inflation" target="_blank" rel="noopener">inflation</a>.
Price levels declined slightly last month amid a decrease in energy prices: year-over-year inflation fell from 7.1% in November to 6.5% in December, marking the largest overall decline in nearly three years even as food and shelter prices continue to increase, according to a <a href="https://www.dailywire.com/news/the-tide-has-turned-inflation-sees-largest-drop-since-2020-lockdowns" target="_blank" rel="noopener">report</a> from the Bureau of Labor Statistics. Members of the Federal Open Market Committee said in a <a href="https://www.federalreserve.gov/newsevents/pressreleases/monetary20230201a.htm" target="_blank" rel="noopener">statement</a> on Wednesday that &#8220;ongoing increases in the target range will be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive.&#8221;
Federal Reserve Chair Jerome Powell previously <a href="https://www.dailywire.com/news/federal-reserve-chair-jerome-powell-discusses-future-slowdown-of-rate-hikes" target="_blank" rel="noopener">confirmed</a> that officials would “moderate the pace of our rate increases.” Target interest rates now sit between 4.5% and 4.75%.
“Monetary policy affects the economy and inflation with uncertain lags, and the full effects of our rapid tightening so far are yet to be felt,” he said. “Given our progress in tightening policy, the timing of that moderation is far less significant than the questions of how much further we will need to raise rates to control inflation, and the length of time it will be necessary to hold policy at a restrictive level.”
Rate hikes increase the cost of borrowing money for consumers and businesses, decreasing inflationary pressures as a result of lower aggregate demand. The effects of higher interest rates are especially noticeable in the housing sector, where 30-year fixed mortgage rates soared from 3% at the beginning of last year to 7% in October before decreasing to roughly 6%, according to <a href="https://fred.stlouisfed.org/series/MORTGAGE30US" target="_blank" rel="noopener">data</a> from government-backed mortgage company Freddie Mac.
Monetary policymakers are seeking to reverse nearly three years of aggressive monetary stimulus, including near-zero target federal funds rates. Officials <a href="https://www.dailywire.com/news/breaking-federal-reserve-hikes-target-interest-rates-half-a-percentage-point" target="_blank" rel="noopener">raised rates</a> by 0.75% on four consecutive occasions before implementing a 0.5% increase at the end of last year.
The Federal Open Market Committee expects that efforts to achieve 2% inflation, the benchmark largely maintained for three decades before the lockdown-induced recession, will take “some time,” as revealed by <a href="https://www.federalreserve.gov/monetarypolicy/fomcminutes20221214.htm" target="_blank" rel="noopener">minutes</a> from their December meeting. “Participants generally observed that a restrictive policy stance would need to be maintained until the incoming data provided confidence that inflation was on a sustained downward path,” a summary said. “In view of the persistent and unacceptably high level of inflation, several participants commented that historical experience cautioned against prematurely loosening monetary policy.”
Inflation has diminished buying power among American households and increased the extent to which they <a href="https://www.dailywire.com/news/some-consumers-financed-holiday-spending-with-record-amounts-of-debt" target="_blank" rel="noopener">utilize</a> debt to make purchases. Rising price levels have outpaced nominal wage increases, producing a 1.7% year-over-year decline in real average hourly earnings as of December, according to <a href="https://www.bls.gov/news.release/realer.nr0.htm" target="_blank" rel="noopener">data</a> from the Bureau of Labor Statistics.
The latest rate hike comes after the economy <a href="https://www.dailywire.com/news/economy-grew-in-fourth-quarter-as-recession-fears-loom-for-2023" target="_blank" rel="noopener">grew</a> at a 2.9% annualized rate in the fourth quarter of 2022, surpassing expectations even as recessionary concerns loom. Economists are divided on whether the nation will soon witness a contraction: Bank of America Chief Investment Strategist Michael Hartnett said in a <a href="https://business.bofa.com/en-us/content/year-ahead-2023/investment-market-outlook-forecasts.html" target="_blank" rel="noopener">report</a> that a recession would occur in the first half of the year before markets attain a “much more solid footing,” while an <a href="https://www.dailywire.com/news/economists-predict-whether-2023-will-see-a-recession" target="_blank" rel="noopener">outlook</a> from Goldman Sachs Chief Economist Jan Hatzius noted analysts at the company believe “there are strong reasons to expect positive growth in coming quarters.”

Chairman Jerome Powell Holds A Press Conference At The Federal Reserve

Federal Reserve Raises Target Interest Rates By Quarter Point, Marking Slowdown Of Aggressive Hikes

Federal Reserve Raises Target Interest Rates By Quarter Point

Federal Reserve

Interest Rates

Americans are expected to shell out roughly $25.9 billion on <a href="https://www.dailywire.com/topic/valentines-day" target="_blank" rel="noopener">Valentine’s Day</a>, marking one of the highest spending years on record despite <a href="http://dailywire.com/topic/inflation" target="_blank" rel="noopener">inflationary</a> pressures and the looming possibility of a <a href="http://dailywire.com/topic/recession" target="_blank" rel="noopener">recession</a>, according to a <a href="https://nrf.com/media-center/press-releases/consumers-plan-increase-valentines-day-spending-nearly-26-billion" target="_blank" rel="noopener">survey</a> from the National Retail Federation.
The average lovebird will spend $192.80 on their significant others, marking a 10% increase from $175.41 last year and the second-highest figure since the group began tracking spending on the holiday nearly two decades ago. Roughly $14 of the $17 rise in spending per consumer will be used for pets, friends, co-workers, and teachers rather than significant others.
“Valentine’s Day is a special occasion to shop for the people we care most about,” National Retail Federation President and CEO Matthew Shay remarked. “This year, as consumers embrace spending on friends and loved ones, retailers are ready to help customers celebrate Valentine’s Day with memorable gifts at affordable prices.”
Virtual shopping is the most popular mechanism for obtaining gifts, according to the trade association, with 35% of respondents indicating that they will use online stores. Roughly 32% of respondents plan to “give a gift of experience,” marking an increase from 26% last year. Men were especially more willing to offer an experience-driven gift.
The findings occur as inflation remains elevated relative to recent years, but somewhat mitigated in comparison to record highs last summer. Price levels declined slightly last month amid a decrease in energy prices: year-over-year inflation fell from 7.1% in November to 6.5% in December, marking the largest overall decline in nearly three years even as food and shelter prices continue to increase, according to a <a href="https://www.dailywire.com/news/the-tide-has-turned-inflation-sees-largest-drop-since-2020-lockdowns" target="_blank" rel="noopener">report</a> from the Bureau of Labor Statistics.
Retail and food services sales reached $677.1 billion in December, adjusted for holiday and seasonal variations, according to an advance <a href="https://www.census.gov/retail/marts/www/marts_current.pdf" target="_blank" rel="noopener">estimate</a> from the Census Bureau. The metric nominally increased 6% relative to levels recorded one year earlier; the reading, which was not adjusted for price levels, was therefore eclipsed by inflation.
Data from the National Retail Federation also <a href="https://www.dailywire.com/news/rise-in-holiday-spending-to-be-outpaced-by-inflation-forecast-says" target="_blank" rel="noopener">indicated</a> that Americans spent record amounts during Christmas and the winter holidays, even as many American households <a href="https://www.dailywire.com/news/some-consumers-financed-holiday-spending-with-record-amounts-of-debt" target="_blank" rel="noopener">made</a> their expenditures using record amounts of debt. The average amount of obligations among those who spent beyond their means rose to $1,549, marking a 24% increase from the previous year, according to a <a href="https://www.lendingtree.com/credit-cards/study/holiday-debt/" target="_blank" rel="noopener">survey</a> from LendingTree. The percentage of debtors who expect to take five months or more to pay off their debt rose from 28% to 37%.
The global economy has experienced lackluster performance even after lockdowns and public health mandates ended across the world. Most analysts believe this year will <a href="https://www.dailywire.com/news/big-short-investor-who-foresaw-2008-recession-lays-out-predictions-for-2023" target="_blank" rel="noopener">see a recession</a> in the United States, a reality that would follow one of the <a href="https://www.dailywire.com/news/stocks-had-their-worst-year-since-2008-after-biden-boasted-about-their-performance" target="_blank" rel="noopener">worst stock market</a> performances in modern history last year, while some are more optimistic. Bank of America Chief Investment Strategist Michael Hartnett said in a <a href="https://business.bofa.com/en-us/content/year-ahead-2023/investment-market-outlook-forecasts.html" target="_blank" rel="noopener">report</a> that a recession will occur in the first half of the year before markets attain a “much more solid footing,” while an <a href="https://www.dailywire.com/news/economists-predict-whether-2023-will-see-a-recession" target="_blank" rel="noopener">outlook</a> from Goldman Sachs Chief Economist Jan Hatzius noted analysts at the company believe “there are strong reasons to expect positive growth in coming quarters.”

Valentines Day aisle, heart shaped gift boxes of Chocolates, Target, Queens, New York

Americans Will Spend Nearly $26 Billion On Valentine’s Day Despite Inflation And Recessionary Risk: Estimate

Americans Will Spend Nearly $26 Billion On Valentine's Day

Valentine's Day

California Governor <a href="https://www.dailywire.com/topic/gavin-newsom" target="_blank" rel="noopener">Gavin Newsom</a> announced Tuesday that he plans to reduce billions of dollars in investments initially slated for climate change programs and delay other funding for major programs amid a $22.5 billion state budget deficit.
Newsom unveiled the state’s $297 billion budget plan for the fiscal year 2023-24, in which the Democrat governor reportedly said he carefully preserved California’s reserves, cautioning against a nationwide recession.
“That makes us very mindful of the uncertainty of this next calendar year — and as a consequence of that — we’re not touching the reserves because we have a wait-and-see approach to this budget,” Newsom said, according to <a href="https://www.latimes.com/california/story/2023-01-10/newsom-budget-deficit-california" target="_blank" rel="noopener">The Los Angeles Times</a>.
Budget cuts include about $6 billion pulled away from programs designed to boost zero-emission vehicles in low-income neighborhoods and replace greenhouse gas vehicles like delivery trucks, airplanes, rail lines, and others, KCRA <a href="https://www.kcra.com/article/california-governor-gavin-newsom-budget-january-10/42445270" target="_blank" rel="noopener">reported</a>.
Politico <a href="https://www.politico.com/news/2023/01/10/newsom-spending-cuts-california-budget-deficit-00077227" target="_blank" rel="noopener">noted</a> the governor has also proposed to delay spending billions of dollars on public universities, transit, behavioral health, building decarbonization, and watersheds.
The California Republican Party told KCRA that Newsom has failed to handle issues like homelessness and wildfires despite record spending.
“Now with a massive budget shortfall projected, it’s time for Gavin Newsom to finally get serious about smarter spending to resolve the many issues that are plaguing our state and driving long-time residents away,” party Chairwoman Jessica Millan Patterson said in a statement.
The Los Angeles Times reported that Newsom and his administration blamed the drop in the state’s revenue on high inflation, an unpredictable stock market, and interest rate increases sparked by the Federal Reserve.
The governor said, however, that he felt confident California would be in a better place “than most other states to weather what’s to come, to weather a recession.”
California projected a deficit after holding onto a budget surplus for the past several years.
The Legislative Analyst’s Office published a <a href="https://www.dailywire.com/news/california-faces-25-billion-deficit-after-years-of-surplus" target="_blank" rel="noopener">report</a> toward the end of last year emphasizing the projected $25 billion deficit, which they say is primarily due to “lower revenue estimates.”
Fox News <a href="https://www.foxbusiness.com/politics/california-facing-24b-budget-shortfall-economic-uncertainty" target="_blank" rel="noopener">reported</a> that analyst officials said the state faces the projected deficit mainly because tax revenues are about $41 billion lower than expected.
&#8220;Spurred by pandemic-related federal stimulus, the U.S. economy entered a period of rapid expansion in the summer of 2020 that extended through 2021,&#8221; the LAO wrote. &#8220;Over the last year, however, evidence has mounted that this rapid economic expansion was unsustainable.&#8221;
The state’s last budget was $308 billion with a $97 billion surplus; the year before that, the budget was $263 billion with a $76 billion surplus. The state currently has $35.6 billion in reserves.
Officials noted that if the state’s reserves aren’t enough to solve the deficit, the legislature will need to cut spending, boost revenues, and possibly move costs around, adding that the challenging economic environment is harming revenues.
The office noted that their revenue estimates “represent the weakest performance the state has experienced since the Great Recession.”
“It’s not insignificant, but it’s also manageable,” Legislative Analyst Gabriel Petek said. “We don’t think of this as a budget crisis.”
Newsom’s administration reportedly said the deficit was “realistic and reasonable.”
Charlotte Pence Bond contributed to this report.

Gavin Newsom

California Gov. Newsom Proposes Reducing Climate Change Funding Amid $22 Billion State Budget Deficit

California

Politics

Coinbase announced plans to <a href="http://dailywire.com/topic/unemployment" target="_blank" rel="noopener">dismiss</a> roughly 20% of its employees for the second time in seven months amid <a href="http://dailywire.com/topic/economy" target="_blank" rel="noopener">headwinds</a> in the broader <a href="http://dailywire.com/topic/cryptocurrency" target="_blank" rel="noopener">cryptocurrency</a> sector.
The collapse of exchange platform FTX and the highly publicized prosecution of <a href="http://dailywire.com/topic/sam-bankman-fried" target="_blank" rel="noopener">Sam Bankman-Fried</a>, the company’s former chief executive, has produced hesitancy toward cryptocurrency products in recent months. Coinbase CEO Brian Armstrong said in a <a href="https://www.coinbase.com/blog/a-message-from-ceo-and-co-founder-brian-armstrong-to-coinbase-employees?clickId=1pVR-3RzfxyNUCESf4yMnTk6UkAwXNTRo0732g0&amp;utm_source=impact&amp;utm_medium=growthp&amp;utm_campaign=rt_p_m_w_d_acq_imp_gro_aff_Skimbit%20Ltd.&amp;utm_content=552039&amp;utm_creative=Online%20Tracking%20Link&amp;irgwc=1" target="_blank" rel="noopener">message</a> to employees that “unscrupulous actors in the industry” and the potential of “further contagion” are presenting near-term difficulties for the company, which in turn necessitate cost reduction measures through which 950 employees will be dismissed.
Armstrong said that the failure of a “large competitor” and the increased “regulatory clarity” that will emerge from the collapse of FTX would produce long-term benefits for his company.
“But it will take time for these changes to come to fruition and we need to make sure we have the appropriate operational efficiency to weather downturns,” he remarked.
Armstrong added that Coinbase had survived multiple bear markets in the sector over the last decade, noting that the most recent selloff is the first in the company’s history to occur amid broader macroeconomic pressures.
“As we examined our 2023 scenarios, it became clear that we would need to reduce expenses to increase our chances of doing well in every scenario,” he continued. “While it is always painful to part ways with our fellow colleagues, there was no way to reduce our expenses significantly enough, without considering changes to headcount.”
The layoffs occur after Coinbase <a href="https://www.dailywire.com/news/crypto-winter-coinbase-to-lay-off-nearly-one-fifth-of-staff" target="_blank" rel="noopener">dismissed</a> 18% of workers in June over concerns that the economy would enter a recession. The exchange rate for bitcoin, the digital asset with the largest market capitalization, has fallen from $22,500 in June to $17,400.
Armstrong said last year that past “crypto winters” have decreased trading volume and thereby impacted Coinbase’s primary source of revenue. Though the company had grown 200% year-over-year since the beginning of 2021, Armstrong concluded that he “over-hired” during the boom in popularity of digital currency products and services.
More recently, however, exposure of commingled funds between FTX and Alameda Research, a trading firm controlled by Bankman-Fried, prompted consumers to withdraw their assets from cryptocurrency platforms, inducing multiple liquidity crises. BlockFi, a lending platform, <a href="https://www.dailywire.com/news/crypto-company-blockfi-files-for-bankruptcy-after-ftx-collapse" target="_blank" rel="noopener">filed for bankruptcy</a> days after FTX was rendered insolvent; firms such as Genesis <a href="https://www.dailywire.com/news/second-major-cryptocurrency-exchange-could-be-poised-to-go-bankrupt" target="_blank" rel="noopener">indicated</a> the looming possibility of bankruptcy, while Voyager and Celsius had already declared bankruptcy months earlier.
A <a href="https://www.dailywire.com/news/investors-much-more-skeptical-of-crypto-after-brutal-bear-market-ftx-collapse" target="_blank" rel="noopener">survey</a> conducted by CNBC and Momentive found that 60% of Americans see the risk of cryptocurrency investments as “high.” Another 26% see cryptocurrencies as moderately risky, while only 10% say the assets carry “little” or no risk.
Bankman-Fried, whose various connections in the federal government rose to public consciousness following the collapse of his companies, pleaded <a href="https://www.dailywire.com/news/sam-bankman-fried-pleads-not-guilty-allowed-to-conceal-who-is-securing-his-250-million-bond" target="_blank" rel="noopener">not guilty</a> last week to eight charges, which include conspiracy to commit wire fraud, conspiracy to commit securities fraud, and conspiracy to defraud the Federal Election Commission through campaign finance violations.
Mark Cohen, a lawyer for Bankman-Fried who formerly <a href="https://www.dailywire.com/news/sam-bankman-fried-hires-attorney-who-defended-epstein-confidant-ghislaine-maxwell" target="_blank" rel="noopener">defended</a> Jeffrey Epstein confidant Ghislaine Maxwell, successfully requested that U.S. District Judge Lewis Kaplan permit the sealing of the names and addresses of two unknown individuals who secured a $250 million bond for Bankman-Fried.

In this photo illustration, a Coinbase logo is displayed on

Major Crypto Platform Cuts Headcount 20% For The Second Time In Seven Months

Coinbase Dismisses 20% Of Employees

Business

Cryptocurrency

Unemployment

<a href="https://www.dailywire.com/topic/jp-morgan" target="_blank" rel="noopener">JPMorgan Chase</a> CEO <a href="https://www.dailywire.com/topic/jamie-dimon" target="_blank" rel="noopener">Jamie Dimon</a> warned about the <a href="https://www.dailywire.com/topic/national-debt" target="_blank" rel="noopener">national debt</a>, expressing concern that the federal government’s obligations will eventually create a financial meltdown even as markets exhibit apathy toward the problem in the near term.
Dimon, widely regarded as one of the most influential executives on Wall Street, remarked during an <a href="https://www.foxbusiness.com/economy/jamie-dimon-sounds-alarm-rising-us-debt-potentially-disastrous-outcomes" target="_blank" rel="noopener">interview</a> with Fox Business host Maria Bartiromo that pension plans would “have to sell” after the failure of securities issued by the Treasury Department to finance deficit spending.
“It is so potentially dangerous we shouldn&#8217;t get anywhere near it,” he said. “And after all the shenanigans of politics, we&#8217;re going to have to fix this. I think it&#8217;s very bad for the nation to constantly be looking at this type of thing.&#8221;
The national debt is nearing $31.5 trillion even as <a href="https://www.dailywire.com/news/interest-payments-on-the-national-debt-on-pace-to-surpass-military-spending" target="_blank" rel="noopener">maintenance costs</a> soar due to the present rise in interest rates. An <a href="https://www.dailywire.com/news/government-must-raise-taxes-40-or-cut-spending-30-to-achieve-fiscal-balance-study" target="_blank" rel="noopener">analysis</a> from economists at the University of Pennsylvania’s Wharton School recently found that a 30% decrease in spending or a 40% increase in taxation would be necessary to handle current deficit spending and future obligations. Republican and Democratic administrations alike have overseen <a href="https://www.dailywire.com/news/the-american-people-want-a-real-change-steve-forbes-rebukes-both-parties-for-sinful-government-spending-habits" target="_blank" rel="noopener">surges</a> in debt over the past several decades.
Republican lawmakers recently <a href="https://www.dailywire.com/news/here-are-the-concessions-house-speaker-kevin-mccarthy-gave-to-republican-holdouts-to-win-their-support" target="_blank" rel="noopener">struck a deal</a> with House Speaker Kevin McCarthy (R-CA) under which the party’s new majority will introduce a budget that refrains from increasing the debt ceiling, an artificial limit on federal obligations imposed by Congress. Dimon said that he understands the lawmakers’ desire to end the provision but said that officials have no choice besides deficit spending as expenses for social programs balloon over the next decade. Social Security, Medicare, and other health programs constituted 46% of the federal budget during the last fiscal year, according to <a href="https://fiscaldata.treasury.gov/americas-finance-guide/federal-spending/" target="_blank" rel="noopener">data</a> from the Treasury Department.
Bartiromo and Dimon also discussed the general level of indebtedness among consumers and businesses. The total level of consumer loans increased from $1.5 trillion at the beginning of President Joe Biden’s tenure to $1.8 trillion as of two months ago, according to <a href="https://fred.stlouisfed.org/series/CONSUMER" target="_blank" rel="noopener">data</a> from the Federal Reserve. The personal savings rate has dropped from 20% to less than 3% over the same period, according to <a href="https://fred.stlouisfed.org/series/PSAVERT" target="_blank" rel="noopener">data</a> from the Bureau of Economic Analysis, marking a significant decline from rates witnessed before the lockdown-induced recession.
Dimon said that “strong” consumer sentiment coupled with rational policy prescriptions from the new Congress could help the economy expand by 3% after a year of lackluster growth that saw two quarterly contractions. Among other policies, Dimon called for reforms to the regulatory system that presently slow “the formation of business,” support for domestic energy companies seeking to construct new pipelines, and initiatives that “stop illegal immigration.”
Economists differ on whether the United States will experience a recession in the coming months. Bank of America Chief Investment Strategist Michael Hartnett said in a <a href="https://business.bofa.com/en-us/content/year-ahead-2023/investment-market-outlook-forecasts.html" target="_blank" rel="noopener">report</a> that a recession would strike in the first half of the year before markets attain a “much more solid footing,” while an <a href="https://www.dailywire.com/news/economists-predict-whether-2023-will-see-a-recession" target="_blank" rel="noopener">outlook</a> from Goldman Sachs Chief Economist Jan Hatzius noted that analysts at the company believe the economy will “stick a soft landing.”

Senate Banking Hearing On Oversight Of The Nation’s Largest Banks

‘We’re Going To Have To Fix This’: JPMorgan Chase CEO Sounds The Alarm Over Soaring National Debt

JPMorgan Chase CEO Jamie Dimon Sounds The Alarm Over Soaring National Debt

Jamie Dimon

JP Morgan

National Debt

Record spending during the <a href="http://dailywire.com/topic/christmas" target="_blank" rel="noopener">holiday</a> season coincided with many American households making expenditures using record amounts of debt.
Though a slightly lower proportion of Americans took on holiday debt at the end of last year, the average amount of debt among those who spent beyond their means rose to $1,549, marking a 24% increase from the previous year, according to a <a href="https://www.lendingtree.com/credit-cards/study/holiday-debt/" target="_blank" rel="noopener">survey</a> from LendingTree. The percentage of debtors who expect to take five months or more to pay off their debt rose from 28% to 37%.
“A year ago, this survey showed the first decrease in average holiday debt since tracking began in 2015,” the online lending marketplace said. “However, following a year of rising prices, seven interest rate hikes from the Federal Reserve to drive credit card interest rates to record levels and overall economic uncertainty, a second-straight decrease wasn’t in the cards. Instead, we got the biggest dollar increase in the eight-year history of this report.”
Parents with minor children, those earning between $50,000 and $100,000, and millennials between the ages of 26 and 41 were the most likely to use debt to finance their holiday spending. Although most Americans still financed their holiday consumer debt through credit cards, the portion of households borrowing from friends and family surged.
News of record debt among some shoppers came after a shopping season that appears to have exceeded previous years. Some 196.7 million Americans shopped online and in person during the five days between Thanksgiving and Cyber Monday, according to <a href="https://www.dailywire.com/news/thanksgiving-weekend-holiday-shopping-shatters-expectations-despite-economic-headwinds" target="_blank" rel="noopener">data</a> released by the National Retail Federation, shattering the trade association’s initial projection of 166.3 million shoppers during the first weekend of the season. The organization had previously <a href="https://www.dailywire.com/news/rise-in-holiday-spending-to-be-outpaced-by-inflation-forecast-says" target="_blank" rel="noopener">forecasted</a> that holiday spending would grow between 6% and 8% from the previous year even as inflationary pressures eroded the purchasing power of households.
“While consumers are feeling the pressure of inflation and higher prices, and while there is continued stratification with consumer spending and behavior among households at different income levels, consumers remain resilient and continue to engage in commerce,” National Retail Federation CEO Matthew Shay said in a <a href="https://nrf.com/media-center/press-releases/nrf-predicts-healthy-holiday-sales-consumers-navigate-economic" target="_blank" rel="noopener">press release</a>. “In the face of these challenges, many households will supplement spending with savings and credit to provide a cushion and result in a positive holiday season.”
Households have been increasingly reliant upon debt amid elevated price pressures. The total level of consumer loans increased from $1.5 trillion at the beginning of President Joe Biden’s tenure to $1.8 trillion as of two months ago, according to <a href="https://fred.stlouisfed.org/series/CONSUMER" target="_blank" rel="noopener">data</a> from the Federal Reserve. The personal savings rate has dropped from 20% to less than 3% over the same period, according to <a href="https://fred.stlouisfed.org/series/PSAVERT" target="_blank" rel="noopener">data</a> from the Bureau of Economic Analysis, marking a significant decline from rates witnessed before the lockdown-induced recession.
The global economy has experienced lackluster performance since public health mandates ended across the world. Most analysts believe this year will <a href="https://www.dailywire.com/news/big-short-investor-who-foresaw-2008-recession-lays-out-predictions-for-2023" target="_blank" rel="noopener">see a recession</a> in the United States, a reality that would follow one of the <a href="https://www.dailywire.com/news/stocks-had-their-worst-year-since-2008-after-biden-boasted-about-their-performance" target="_blank" rel="noopener">worst stock market</a> performances in modern history last year, while some are more optimistic. Bank of America Chief Investment Strategist Michael Hartnett said in a <a href="https://business.bofa.com/en-us/content/year-ahead-2023/investment-market-outlook-forecasts.html" target="_blank" rel="noopener">report</a> that a recession will strike in the first half of the year before markets attain a “much more solid footing,” while an <a href="https://www.dailywire.com/news/economists-predict-whether-2023-will-see-a-recession" target="_blank" rel="noopener">outlook</a> from Goldman Sachs Chief Economist Jan Hatzius noted that analysts at the company believe the economy will “stick a soft landing.”

Old fashion gag gift, a Christmas Stocking full of coal

Some Consumers Financed Holiday Spending With Record Amounts Of Debt

Record Amounts Of Holiday Debt Accompanied Christmas Cheer

Christmas

Scion Asset Management founder Michael Burry, whose story was featured in “The Big Short” after he predicted the 2008 financial crisis, predicted that the new year will see a slowdown in <a href="http://dailywire.com/topic/inflation" target="_blank" rel="noopener">inflation</a> as well as a <a href="http://dailywire.com/topic/recession" target="_blank" rel="noopener">recession</a>.
<a href="http://dailywire.com/topic/economy" target="_blank" rel="noopener">Economic</a> volatility has persisted as a result of inflationary pressures, <a href="http://dailywire.com/topic/unemployment">labor</a> shortages, and backlogged <a href="http://dailywire.com/topic/supply-chain" target="_blank" rel="noopener">supply chains</a>, inducing negative growth in the first two quarters of last year. Policymakers at the <a href="http://dailywire.com/topic/federal-reserve" target="_blank" rel="noopener">Federal Reserve</a> are currently pursuing the most aggressive campaign to suppress prices in decades as geopolitical pressures mount across the world.
Burry <a href="https://twitter.com/michaeljburry/status/1609767590494371840" target="_blank" rel="noopener">remarked</a> on social media that year-over-year changes in the Consumer Price Index will continue to decline, possibly turning negative in the second half of the year. “Inflation peaked,” he said, “but it is not the last peak of this cycle.”
The former physician predicted that the United States will enter a recession by the end of the year, leading the Federal Reserve to cut target interest rates and prompting lawmakers to enact stimulus measures, in turn causing “another inflation spike.”
Burry garnered fame by betting against technology stocks during the dot-com bubble, earning 55% returns while the S&amp;P 500 dropped 12%, according to a <a href="https://www.businessinsider.com/michael-burry-life-story-2017-5" target="_blank" rel="noopener">profile</a> in Business Insider. He likewise shorted the housing market after evaluating bank balance sheets and subprime mortgage data, earning $100 million for himself and $700 million for his investors. The experience formed the basis of “The Big Short,” a book published by author Michael Lewis, which was later adapted into a movie in which actor Christian Bale starred as Burry.
The financier made headlines several months ago after he <a href="https://www.dailywire.com/news/the-big-short-investor-who-famously-predicted-2008-recession-sells-all-but-one-of-his-stocks" target="_blank" rel="noopener">reduced</a> his company’s stock holdings from $165 million to $3.3 million, selling all assets except for 500,000 shares of GEO Group, which invests in private prisons and mental health systems.
Economists generally foresee a recession striking the United States by the end of the year. Approximately 70% of economists <a href="https://www.bloomberg.com/news/articles/2022-12-20/economists-place-70-chance-for-us-recession-in-2023?srnd=premium" target="_blank" rel="noopener">surveyed</a> by Bloomberg last month said that the economy would enter a prolonged retraction, predicting that gross domestic product would show flat readings in the first and third quarters and a 0.7% annualized decline in the second quarter. In a similar <a href="https://nabe.com/NABE/Surveys/Outlook_Surveys/December_2022_Outlook_Survey_Summary.aspx" target="_blank" rel="noopener">poll</a> from the National Association for Business Economics, most respondents said recessionary risks have surpassed 50% amid slower growth and a lackluster labor market.
There exists no consensus on economic futures over the next several months. Bank of America Chief Investment Strategist Michael Hartnett said in a <a href="https://business.bofa.com/en-us/content/year-ahead-2023/investment-market-outlook-forecasts.html" target="_blank" rel="noopener">report</a> that a recession will strike in the first half of the year before markets attain a “much more solid footing,” while an <a href="https://www.dailywire.com/news/economists-predict-whether-2023-will-see-a-recession" target="_blank" rel="noopener">outlook</a> from Goldman Sachs Chief Economist Jan Hatzius noted that analysts at the company believe the economy will “stick a soft landing” and entirely avoid a recession.
Last year marked the highest <a href="https://www.dailywire.com/news/gas-prices-in-2022-were-the-highest-on-record-heres-where-they-could-be-heading-next-year" target="_blank" rel="noopener">gas prices</a> on record and one of the <a href="https://www.dailywire.com/news/stocks-had-their-worst-year-since-2008-after-biden-boasted-about-their-performance" target="_blank" rel="noopener">worst stock market</a> performances in history. The S&amp;P 500 index plummeted nearly 20% since the beginning of the year, rivaling the 37% decline seen in 2008 amid the collapse of the banking system, as well as the 12% and 22% declines witnessed in 2001 and 2002 amid the dot-com bubble.
The lackluster returns, which <a href="https://www.dailywire.com/news/401-pain-average-retirement-savings-continue-to-plummet" target="_blank" rel="noopener">erased</a> roughly one-quarter of equity from the typical American’s retirement account, occurred despite optimism at the beginning of last year from President Joe Biden, who <a href="https://www.whitehouse.gov/briefing-room/speeches-remarks/2022/01/07/remarks-by-president-biden-on-the-december-2021-jobs-report/" target="_blank" rel="noopener">boasted</a> that the stock market was approximately 20% “higher than it was when my predecessor” was in office.

“The Big Short” New York Premiere – Outside Arrivals

‘Big Short’ Investor Who Foresaw 2008 Recession Lays Out Predictions For 2023

Investor Who Predicted 2008 Recession Lays Out Forecasts For 2023

Stock Market

Various polls show that <a href="http://dailywire.com/topic/economy" target="_blank" rel="noopener">economists</a> generally expect a <a href="http://dailywire.com/topic/recession" target="_blank" rel="noopener">recession</a> this year, although there is no consensus among leading analysts.
The economy has been throttled by <a href="http://dailywire.com/topic/inflation" target="_blank" rel="noopener">inflationary</a> pressures, <a href="http://dailywire.com/topic/unemployment" target="_blank" rel="noopener">labor</a> shortages, and backlogged <a href="http://dailywire.com/topic/supply-chain" target="_blank" rel="noopener">supply chains</a>, contributing to negative growth in the first two quarters of last year. Central bankers at the <a href="http://dailywire.com/topic/federal-reserve" target="_blank" rel="noopener">Federal Reserve</a> are embarking upon the most aggressive campaign to suppress rising price levels in decades as geopolitical pressures in eastern Europe and southeast Asia continue to mount.
Roughly 70% of economists <a href="https://www.bloomberg.com/news/articles/2022-12-20/economists-place-70-chance-for-us-recession-in-2023?srnd=premium" target="_blank" rel="noopener">surveyed</a> by Bloomberg last month said that the United States would witness a recession this year. Respondents predicted that gross domestic product would show flat readings in the first and third quarters, as well as an annualized decline of 0.7% in the second quarter. They project year-over-year inflation, as measured by the Personal Consumption Expenditures Price Index, to approach 3% in the fourth quarter as the Federal Reserve hikes the target federal funds rate, a reality that will also produce 4.9% unemployment.
Another poll of professional economic forecasters from the National Association for Business Economics showed that most respondents say recessionary risks have surpassed 50% amid slower economic growth, higher inflation, and a lackluster labor market. “Panelists expect job growth will slow over the first three quarters of 2023 but remain positive,” Conference Board Chief Economist Dana Peterson said in a <a href="https://nabe.com/NABE/Surveys/Outlook_Surveys/December_2022_Outlook_Survey_Summary.aspx" target="_blank" rel="noopener">statement</a>.
Beyond the United States, a study from the World Bank likewise predicts that contractionary monetary policy in leading developed countries heightens the risk of a global recession.
“My deep concern is that these trends will persist, with long-lasting consequences that are devastating for people in emerging market and developing economies,” World Bank Group President David Malpass said in a <a href="https://www.worldbank.org/en/news/press-release/2022/09/15/risk-of-global-recession-in-2023-rises-amid-simultaneous-rate-hikes" target="_blank" rel="noopener">press release</a>. “Policies should seek to generate additional investment and improve productivity and capital allocation, which are critical for growth and poverty reduction.”
On the other hand, economists at Goldman Sachs place the risk of a recession in the United States at a significantly lower 35%, forecasting that the nation will “stick a soft landing” as inflation decreases with only a slight impact on unemployment.
“There are strong reasons to expect positive growth in coming quarters,” Goldman Sachs Research Head Jan Hatzius said in the investment bank’s <a href="https://www.goldmansachs.com/insights/pages/outlook-2023-us-expected-to-escape-recession.html" target="_blank" rel="noopener">outlook</a>. “Our economists expect real disposable income to increase to a pace of more than 3% over the next year. Even as financial conditions have tightened and are now subtracting about 2 percentage points from growth, the rise in real income is likely to be the stronger force next year.”
Positive growth could come as other major economies are rocked by problems more severe than those in the United States, as noted by a <a href="https://www.americanprogress.org/article/despite-global-inflation-the-u-s-economic-recovery-is-among-the-strongest-of-g-7-nations/" target="_blank" rel="noopener">report</a> from the Center for American Progress. Soaring energy prices in Europe driven by the Russian invasion of Ukraine and aggressive renewable power goals have led to higher price levels. The economy of China has suffered as zealous lockdown measures slow manufacturing activity and prompt some firms to start new operations abroad. Indeed, the pressures in major economies could prompt the rise of emerging markets such as India, which is projected to <a href="https://www.dailywire.com/news/major-indian-company-to-start-producing-semiconductors-as-global-shortages-threats-from-china-continue" target="_blank" rel="noopener">surpass</a> Japan and Germany as the world’s third-largest economy sometime in the next decade.

Times Square As U.S. Stocks Climb On Earnings

Economists Predict Whether 2023 Will See A Recession

Will There Be A Recession In 2023?

Supply Chain

Rapper <a href="https://www.dailywire.com/topic/cardi-b">Cardi B</a> shared a message with fans who were mocking her for worrying about the <a href="https://www.dailywire.com/topic/recession">recession</a>. 
It all started earlier this week when the “Bodak Yellow” <a href="https://www.dailywire.com/topic/celebrities">star</a><a href="https://twitter.com/iamcardib/status/1605299305996115968"> tweeted</a>, “We going through a recession…..Merry Christmas.”
The comments were flooded with fans sharing their opinions on the sentiment, with some urging her to vote differently and others making fun of Cardi for complaining about money. She responded to one who <a href="https://twitter.com/Happymeals420/status/1605314838539997184">wrote</a>, “Says the rapper worth 40 million,” alongside a GIF of a man nodding his head and rolling his eyes.
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">
I’m worth more then that and guess what ? If I don’t save ,work and budget I could lose it too! What makes you think that no matter how much money you got you can’t lose it all if you don’t manage your money correctly.I too have bills,responsibilities and people I have to help. <a href="https://t.co/QWIaj5Lpma">https://t.co/QWIaj5Lpma</a>
&mdash; Cardi B (@iamcardib) <a href="https://twitter.com/iamcardib/status/1605322412521709570?ref_src=twsrc%5Etfw">December 20, 2022</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
The singer, whose real name is Belcalis Almanzar, replied with, “I’m worth more [than] that and guess what? If I don’t save, work and budget I could lose it too!&#8221;
 “What makes you think that no matter how much money you got you can’t lose it all if you don’t manage your money correctly. I too have bills, responsibilities and people I have to help,” she added.
While that wasn’t enough to convince many of her 27 million followers, a few seemed to agree that even millionaires were capable of going broke.
“Exactly cardi. Like I could be worth 2m bringing in 500k a year but if my expenses are 450K what am I? BROKE. Like people don’t get it, especially being the &#8216;breadwinner&#8217; in the family we take care of others, send money, help out etc, sh** can go QUICK,” one reply <a href="https://twitter.com/JARRETT/status/1605395556989251584">said</a>.
This isn’t the first time Cardi B has mentioned the economy. In June, she <a href="https://www.dailywire.com/news/even-cardi-misses-trumponomics-cardi-b-wants-to-know-when-they-will-announce-the-recession">asked</a> on Twitter, “When y’all think they going to announce that we going into a recession?”
Fans were amused by the “I Like It” singer seeming to care more about economics than government officials do. 
“Even Cardi misses Trumponomics,” one person tweeted in response.
“So the person who wrote ‘WAP’ is more informed than the United States government. Lol,” another agreed.
Matt’s Idea Shop came up with a funny alternate meaning for the acronym for the rapper’s raunchy song “WAP.” He said in light of current events, the song “stands for Weak A** President.”

2019 ASCAP Rhythm & Soul Music Awards – Arrivals

‘I Could Lose It Too’: Cardi B Says Her Massive Net Worth Isn’t Recession-Proof, Fans React

'I Could Lose It Too': Cardi B Says Her Massive Net Worth Isn't Recession-Proof, Fans React

Cardi B

Celebrities

Entertainment

The Commerce Department estimated <a href="http://dailywire.com/topic/economy" target="_blank" rel="noopener">economic</a> growth in the third quarter at a 3.2% annualized pace, marking an upward revision from 2.9%.
Real gross domestic product, the sum of all final goods and services produced in the economy, increased between July and September following two straight quarters of decline. The agency’s <a href="https://www.dailywire.com/news/economy-turns-positive-in-third-quarter-biden-takes-credit" target="_blank" rel="noopener">first estimate</a>, which was released in October, placed growth at 2.6%.
“The updated estimates primarily reflected upward revisions to consumer spending and nonresidential fixed investment that were partly offset by a downward revision to private inventory investment,” according to <a href="https://www.bea.gov/news/2022/gross-domestic-product-third-estimate-gdp-industry-and-corporate-profits-revised-third" target="_blank" rel="noopener">data</a> from the agency. Overall increases came from higher “exports, consumer spending, nonresidential fixed investment, state and local government spending, and federal government spending, that were partly offset by decreases in residential fixed investment and private inventory investment.”
Economists had predicted that growth in the quarter would be 1.4%, with real output growth of 1.6% for 2022 and 1.3% for 2023, according to a <a href="https://www.philadelphiafed.org/surveys-and-data/real-time-data-research/spf-q3-2022" target="_blank" rel="noopener">report</a> from the Federal Reserve Bank of Philadelphia. Executives <a href="https://www.dailywire.com/news/ceos-are-pessimistic-heading-into-the-new-year" target="_blank" rel="noopener">surveyed</a> by Business Roundtable forecast 1.2% growth for next year, a figure well below the 2.3% growth recorded in 2019.
More recently, however, consumer spending in the United States posted a decline. American retail expenditures fell 0.6% between October and November, according to <a href="https://www.dailywire.com/news/retail-spending-posted-huge-decline-in-november" target="_blank" rel="noopener">data</a> released by the Census Bureau. Households spent $689.4 billion in November on retail and food services, adjusted for seasonal variation and holiday differences, according to advance estimates.
Data indicate that current consumer spending occurs as households use <a href="https://www.dailywire.com/news/relying-on-credit-cards-to-pay-basic-bills-reading-between-the-lines-on-bidens-rosy-economic-outlook" target="_blank" rel="noopener">savings and debt</a> to make purchases. The total level of consumer loans increased from $1.5 trillion at the beginning of Biden’s tenure to $1.8 trillion as of last month, according to <a href="https://fred.stlouisfed.org/series/CONSUMER" target="_blank" rel="noopener">data</a> from the Federal Reserve.
The labor market, however, has remained strong for the past two years despite the economic volatility. Total nonfarm employment <a href="https://www.dailywire.com/news/unemployment-down-robust-labor-market-as-holidays-approach-jobs-report-shows" target="_blank" rel="noopener">increased</a> by 263,000 last month, surpassing analysts’ expectations of 200,000 new positions as the unemployment rate was unchanged from the previous month at 3.7%.
Officials at the Federal Reserve are eyeing key economic data as they seek to end nearly three years of aggressive monetary stimulus, including near-zero target interest rates and the purchase of government securities from market actors, which had been established in response to the lockdown-induced recession. Policymakers <a href="https://www.dailywire.com/news/federal-reserve-hikes-interest-rates-three-quarters-of-a-point" target="_blank" rel="noopener">raised rates</a> by three-quarters of a percentage point on four consecutive occasions before they <a href="https://www.dailywire.com/news/breaking-federal-reserve-hikes-target-interest-rates-half-a-percentage-point" target="_blank" rel="noopener">announced</a> a half-percent increase this month, raising the cost of borrowing money for consumers and businesses.
White House officials have downplayed inflationary pressures and other economic turmoil. After the release of the preliminary third quarter output forecast, Biden <a href="https://www.dailywire.com/news/economy-turns-positive-in-third-quarter-biden-takes-credit" target="_blank" rel="noopener">claimed</a> that “doomsayers” had been “rooting for a downturn” while falsely arguing that the nation had been in a recession.
Despite rising price levels and supply chain bottlenecks, the United States is comparatively more robust than other major economies, as Europe struggles with <a href="https://www.dailywire.com/news/european-banks-brace-for-energy-rations-that-could-threaten-financial-system-rush-to-test-diesel-fueled-backup-generators" target="_blank" rel="noopener">energy shortages</a> and China suffers from strict <a href="https://www.dailywire.com/news/chinese-manufacturing-is-quickly-collapsing" target="_blank" rel="noopener">government lockdowns</a>. The dollar reached parity with the euro this year for the first time in two decades.
The International Monetary Fund currently <a href="https://www.imf.org/en/Publications/WEO/Issues/2022/10/11/world-economic-outlook-october-2022" target="_blank" rel="noopener">predicts</a> that the global economy will expand 3.2% in 2022 and 2.7% in 2023, marking “the weakest growth profile since 2001 except for the global financial crisis and the acute phase of the COVID-19 pandemic.”

24A6CA8E-6D80-4BA4-BBD9-1E92E5B88DC9_1_201_a

U.S. Economic Growth Upwardly Revised For The Third Quarter

Economic Growth Upwardly Revised For The Third Quarter

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