Fitch’s economists expect the recession in the country to be fairly mild and the unemployment rate to rise from the current 3.5% to 5.2% in 2024, implying the loss of millions of jobs, which, however, will be less than the of the two previous recessions, according to the report.
According to Fitch, high inflation “will prove to be too great a drag” on household incomes next year, as it will reduce consumer spending and cause it to recede during the second quarter of 2023, the report added.
US consumer prices rose more than expected in September and underlying inflationary pressures continued to build, reinforcing expectations that the Federal Reserve will make a fourth interest rate hike of 75 basis points in the month to come. comes.
Inflation is well above the Fed’s 2% target, despite moderating as supply chains loosen and oil prices retreat from spring highs.
