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12° Nicosia,
16 August, 2022
 

The US has plunged into recession

The US Federal Reserve raised rates another 75 points last night to keep a lid on soaring prices

Source: The Telegraph

The US has plunged into recession as soaring inflation hammers the world’s largest economy.

GDP fell 0.9pc in the second quarter, according to the Commerce Department. That came after a 1.6pc decline in the first three months of the year.

The two consecutive quarters of contraction mean the US is now in a technical recession.

Personal consumption, the largest part of the economy, rose 1pc. However, this was a slowdown from the previous period.

It comes as President Joe Biden grapples with surging inflation, which last month hit 9.1pc – a 40-year high.

The Federal Reserve last night confirmed its second 75 basis-point interest rate rise in an effort to keep a lid on soaring prices. However, the move will fuel concerns about a slowdown in the economy.

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Cyprus  |  USA  |  inflation

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