The U.S. economy could soon be in a state of “stagflation,” an expert warned, blaming the Biden administration’s “enormous” spending on the skyrocketing national inflation, amid growing fears of a recession.
“There are increasing fears on Wall Street that we may be headed for a recession,” Peter St. Onge, a research fellow in economic policy at The Heritage Foundation, told NTD’s Capitol Report on April 12. “Really, the enormous spending over these past couple of years has sort of painted the Fed [Federal Reserve] into a corner, where they are running up against this historic inflation.”
Last month, U.S. inflation accelerated to an 8.5 percent annual rate. Some economists believe that regaining control of prices will require far more aggressive rate hikes by the Federal Reserve, which may topple the U.S. economy into a recession.
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