After convening its Chief Economics Committee to discuss members’ outlooks for the economy in 2023, the U.S. Chamber of Commerce released a report outlining their economic outlook predictions.
The consensus among Committee Members is that the U.S. will experience a mild but short recession in the middle of 2023 caused by consumer and business spending falling because of rising interest rates.
Additionally, Chief Economist Joe Brusuelas from audit, tax and consulting firm RSM US, noted that businesses are finding it increasingly difficult to pass along higher prices to customers through price increases, which will likely mean shrinking profit margins for businesses.
Members pointed out this will likely be the first recession in memory where there will be no extra assistance, other than automatic stabilizers, from fiscal or monetary policy.
Congress sending recession relief to families and the Federal Reserve loosening monetary policy would both make inflation worse, and hence be self-defeating. Families and businesses will have to weather the economic downturn with the resources already available to them.
Read the full story here, including predictions on other economic issues to watch.
