The US economy shows signs of slowing down
Cong Tung (VTV reporter residing in the US)–Friday, May 6, 2022 10:25 GMT+7
Inflation is the biggest concern of American people now. Housing, food and energy prices have all escalated. This makes the salary increase, even if it is not, to compensate for the current rate of inflation.
CNBC quoted the results of a survey of about 4,000 adults, showing that 81% of them are worried about a mild economic recession that may take place this year in the US.
The New York Times reported that the United States spent heavily by injecting hundreds of billions of dollars into the economy to control the epidemic and recover faster, but as a result, it accelerated inflation.
Many people question, is the strong spending of the US government worth it?
Illustration – Photo: Reuters.
According to the WTJ, the US trade deficit hit a record high in March, up 22.3% month-on-month, to nearly $110 billion. Imports are much higher than exports. The trade imbalance is weighing heavily on US GDP. Businesses have to face labor shortages and rising borrowing costs.
America’s job demand is huge, but paradoxically, more than 4.5 million Americans quit their jobs in March, looking for new job opportunities with higher wages.
Also in March, the number of jobs increased by a record 11.5 million, the highest in 22 years in the US. However, the unhealthy and precarious situation of the labor market caused inflation to rise. The manufacturing, retail, transportation, and warehousing industries are struggling with labor shortages.
In order to stabilize the economy, U.S. Federal Reserve (Fed) just increased interest rates by half a percentage point. This is the most drastic step to solve the highest inflation crisis in more than 40 years. With tight monetary policy, the Fed expects the US economy to gradually cool down.
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