Is the United States headed toward a recession?
MERIDIAN, Miss. (WTOK) -
The U.S. economy appears to be sliding into another recession based on declining consumer sentiment cited in new research from Dartmouth College and the University College in London.
Local financial advisor Gary James of Summit Wealth Group says many expected a major recession during the COVID pandemic but that hasn’t happened.
However, James says he believes there are two major risks that could cause a recession: an increase in taxes and an increase in interest rates.
”I think how severe a recession can be will ultimately depend on how much they go up and how rapidly they go up,” said Gary James, a Vice President with Summit Wealth Group of Meridian. “Is inflation going to make them raise rates more and earlier than they want to? You and I can’t continue seeing our grocery bill go up five percent every year. That’s just not tenable long term. I think that’s your major right there for a recession.”
As far as the stock market is concerned, James advises most investors to keep a long term approach.
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