FX Leaders
Economists predict a potential recession could hit Americans as early as June, having the potential to be the worst in recent history.
Many Americans are facing yet another threat of a recession. The Trump administration accelerating the process of a recession with his high tariffs with it arriving as early as June.
Gen-Z could see a third recession before the age of 25 experiencing the “Great Recession” of 2007 – 2009 due to the housing crisis, the pandemic recession and now the tariff recession could seem likely to happen.
Many Gen-Z, especially those in college, are now more concerned about the recent dissolvement of the department of education, high prices for college and housing being unattainable. The threat of a recession coming soon is now leaving college students more concerned with the future.
“I still have to live with my parents while being in college. I have to pay for my car, tuition, food and groceries while working a part time job at an outlet mall. I am struggling now as it is and now with this potential recession coming, I don’t know how much I’ll be able to pay for.” -Jessie Poole, Sophomore at Kennesaw State University
This recession could potentially be worse than previous recessions. The U.S. could get stuck in “stagflation,” a condition in which inflation takes off at the same time that the job market gets weaker.
Stagflation is incredibly difficult to climb out of, especially when corporate America is suffocated by higher costs of living and low revenue that could send millions out of work with job cuts likely to happen. When people whose jobs are their primary source of income could spend even less money due to higher costs of living, prices of goods and services skyrocketing could send inflation levels higher. This negative cycle which feeds on itself could spell disaster if the administration maintains its current course.
Raising interest rates are supposed to address inflation with the Federal Reserve usually stepping in to combat rising prices and inflation, but with stagflation, rates hike up. Increasing rent costs, mortgage rates, auto and student loans. Everyone having to pay off debts or spending less money, the negative cycle continues.
President Donald Trump’s reciprocal tariffs have shocked the stock market with the market plummeting due to the uncertainty of supplies and its negative effects on trade. There is a chance that retailers and factories will not be able to pass along the costs to the consumers. Decreasing demand for certain products means the supply of products would slow down.
Economists predict that a potential recession could hit everyday Americans this summer according to Apollo Global Management. As they predict that early to mid-May containerships to U.S. ports could come to a stop, mid-to-late May trucking demand comes to a halt, leading to empty shelves and lower sales for companies, late-May-to-early-June layoffs will occur and by June to July a recession will be in full swing.