While Americans struggle daily with inflation, and high gas and food prices, economists at investment firm Morgan Stanley added one more thing to the list.
There will be ongoing convulsions to the U.S. economy, which probably means your 401K will not look any rosier anytime soon.
Also according to Morgan Stanley, things like low interest rates and cheap debt will be becoming things of the past.
@billbrowder Democrat Plan=Inflation, dependence on Saudi oil, war in Europe, broken supply chain & food scarcity. Sit on beach while American workers & families struggle. Dems ignore economy at own peril
— Toad (@ToadonaWire) June 6, 2022
RELATED: Watch: Democrat Senator Stabenow Hammered As Totally Out Of Touch For Not Caring About Gas Prices
Making Predictions
There are concerns that the volatile stock market could get even dicier by the specter of what was once thought impossible: Stagflation.
In short, that’s high inflation and a stagnant, or even shrinking, economy.
Ted Pick is the head of institutional securities at Morgan Stanley. He says of the roller coaster that is the stock market “We’ll have these periods where it feels awfully fiery, and other periods where it feels icy, and clients need to navigate around that. We’ll be having this conversation for the next 12, 18, 24 months.”
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Fox Business reports that there is growing concern on Wall Street that a recession could be unintentionally sparked by the Fed attempting to curb inflation. Inflation hit a nearly 40 year high in April at 8.3%.
Typically, the central bank’s primary weapon against inflation is to raise interest rates, which have been at historic lows in recent years.
Last month, the Federal Reserve raised interest rates one half percentage point, and more hikes could definitely be in store.
Morgan Stanley is not alone in their prediction of more economic downturn in the next two years. Bank of America, Fannie Mae, and Deutsche Bank have made similar forecasts.
77% of Americans say the country’s economic outlook is “getting worse.”
Biden’s economy is not working for the American people.
— GOP (@GOP) June 5, 2022
RELATED: Marjorie Taylor Greene Demolishes Lindsey Graham For Helping Democrats On Gun Control
Economic Storm Clouds Ahead
Other economic experts echo Morgan Stanley’s assessment of still more impending economic hardship for Americans.
At a recent financial conference, JP Morgan head Jamie Dimon also had dire warnings for the U.S. economy, saying an economic “hurricane” is on the way.
“I said there were storm clouds. But I’m going to change it. It’s a hurricane. Right now it’s kind of sunny, things are doing fine, everyone thinks the Fed can handle it. That hurricane is right out there down the road coming our way. We don’t know if it’s a minor one or Superstorm Sandy.”
But those in the Biden administration tasked with insisting that all is well, continue to do just that.
Fox News’ Peter Doocy asked White House Press Secretary Karine Jean-Pierre at a recent Press briefing, “When are you guys going to admit you were wrong about inflation? The Treasury Secretary says that she was wrong, so why doesn’t anybody here at the White House?”
Doocy referred to comment s made by Treasury Secretary Janet Yellen that she had been wrong about inflation concerns. Jean-Pierre then referenced Yellen’s statement saying she had been wrong and that “unanticipated and large shocks to the economy” were what had caused her to be wrong.
Jean-Pierre’s response to Doocy: “the president’s economic plan, as we see it, is working.”
The advice from economic experts to Americans seems to be, “buckle up, it’s only going to get worse.”
Doocy: “In some places in this country now, a gallon of gas costs more than the people on the federal minimum wage are making in an hour. What does the WH want these people supposed to do? Just stop driving to work?”
Karine Jean-Pierre says Biden “understands what it feels like” pic.twitter.com/Pu4BbC8U35
— Curtis Houck (@CurtisHouck) May 31, 2022
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