Last Updated on January 2, 2023 by Bitfinsider

There may be a shock to the American economy. Financial professionals predict that the nation will see an economic slowdown this year, according to data from a Wall Street Journal survey.

In 2023, the United States will have a “shallow” or “moderate” recession, according to more than two-thirds of experts at 23 major financial institutions that do business with the Federal Reserve. Two of the institutions that were questioned anticipate a recession in the upcoming year.

Big names in the financial services industry were included in the study, including Barclays PLC, Bank of America Corp., TD Securities, and UBS Group AG. Because it raised rates to combat inflation and achieve its goal, the Federal Reserve was cited as the main cause of the recession. Inflation in the United States is currently at 7%, which is more than the Fed’s target rate of 2%.

Pandemic savings being spent, a drop in the housing market, and banks having stricter lending rules are additional indicators of an impending recession.

According to the survey, many analysts anticipate that the country’s unemployment rate will increase from 3.7% in November 2022 to above 5% coupled with a general decline in the economy.

However, a recession will not occur in 2023 or 2024, according to predictions made by Credit Suisse Group AG, Goldman Sachs Group Inc., HSBC Holdings PLC, JPMorgan Chase & Co., and Morgan Stanley.

In general, the outlook for the U.S. economy and the world economy has not been the best. Elon Musk predicted the world slump will run through the end of the year, or around 2024, in October.

These gloomy prognoses are due to recurring global problems like inflation and severe energy shortages. Bitcoin in particular has been mentioned publicly by certain decentralized finance professionals as a buffer against inflationary money.