President Biden focuses on Ukraine, economy in State of Union and says we will ‘be okay’
The U.S. economy is still climbing out of the COVID-induced downturn as a robust job market powers it to cruising speed.
So why is talk of recession in the air?
Some top economists are raising the odds of a slump within the next year or so amid Russia’s invasion of Ukraine, rising energy prices, historic inflation, the stock market sell-off and the prospect of aggressive Fed rate hikes.
“The risk is uncomfortably high,” says Mark Zandi, chief economist of Moody’s Analytics.
Since the Ukraine war began, Zandi has increased his estimate of the chance of a recession in the next 12 to 18 months from 15% to 30%.