More and more experts are talking about the risk of a recession. Moody’s Analytics Chief Economist Mark Zandi told CNN that the U.S. economy has at least a one-in-three chance of sinking into a recession over the next 12 months. With prices at the pump moving higher, some Democrats are proposing a stimulus-like check to help Americans pay for gas. In their bill, the government would send $100 per month to individuals each month the national gas price exceeds $4 per gallon. However, these ongoing inflation and geopolitical worries have been pushing gold prices higher. The yellow metal is set for its third weekly gain.

 

CNN Business/Matt Egan
Recession risks are ‘uncomfortably high and moving higher,’ Mark Zandi says

The war in Ukraine. Red-hot inflation. And rapid interest rate hikes. The economic recovery that began two years ago faces credible threats that could lead to its premature demise.

The US economy has at least a one-in-three chance of sinking into a recession over the next 12 months, Moody’s Analytics chief economist Mark Zandi told CNN.
“Recession risks are uncomfortably high — and moving higher,” Zandi said.

Before Russia invaded Ukraine, economists hoped energy prices and overall inflation would cool off this spring and summer. Now, the inflation outlook has darkened, with prices for gasoline, food, metals, and other raw materials rising sharply.

You can read the full story, here.

 

Reuters via CNBC
Gold set for third weekly gain in four as Ukraine conflict deepens

Gold rose on Thursday as safe-haven support from the Russian invasion of Ukraine was countered by signs that U.S. Federal Reserve officials could act more aggressively to tame inflation.

Spot gold rose 0.1% to $1,945.92 per ounce. U.S. gold futures rose 0.8% to $1,953.50.

“Gold’s upside is severely capped by the Fed’s aggressive bias towards rate hikes, though the precious metal remains well-supported by persistent fears over the Russia-Ukraine war’s global implications,” said Han Tan, chief market analyst at Exinity.

Gold is sensitive to rising interest rates, which increase the opportunity cost of holding it.

Read the full story, here.

 

Fox Business/Andrew Mark Miller
Democrats propose bills to send gas payments to Americans, some funded by taxing oil companies

Democrats in Congress, fearful of pain at the pump when voters head to the polls in November, are pushing a variety of proposals that would send direct payments from the government to Americans to help cover skyrocketing gas prices over the past year.

Democrat Reps. Mike Thompson, John Larson, and Lauren Underwood are proposing a plan similar to the COVID relief payments sent to Americans during the pandemic that would send $100 per month to individuals each month the national gas price exceeds $4 per gallon. In the bill, couples would receive $200 plus $100 for each dependent.

You can read the full article, here.

 

 

 

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