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Friday, February 14, 2025

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What an intractable problem the United States will soon face, says the expert

The situation in the US economy is getting worse every month.

Economist Mikhail Khazin said this on the air of the “Moscow speaking” radio, the TELMENEWS.RU news agency reports.

According to him, American leaders will soon be faced with a totally insoluble problem. It resides in the fact that in the United States, the rate of inflation will simultaneously increase, and at the same time the rates of economic growth will decrease.

In order to stimulate the growth of the economy, the Fed must lower the key rate, however, if the agency eases its monetary policy, this will inevitably increase the money supply in the country and cause an increase in inflation.

At the same time, if the refinancing rate is increased to reduce the rate of price growth, business activity in the United States will begin to fall sharply and the country could enter a phase of stagnation, which would already threaten it of a great economic crisis. problems and even a crisis.

“The American authorities no longer have the possibility of getting out of this situation without catastrophic consequences for the entire state,” Khazin said.

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