Kathmandu. The threat of recession in the United States, the world’s largest economy and powerful country, is not over yet. America’s main economic indices are still indicating a recession.
The leading economic index (LIE) declined for the sixth consecutive month in May. It has decreased 37 times in the last 39 months. Which is one of the longest periods in American history.
In the last six months, there has been a decline of 5 percent year-on-year. Which indicates that there is still a danger of recession in America.
Lie has dropped 16 percent from its highest level and reached its lowest level in nine years. If we look at history, there has been a long-term decline in LEI every time since the 1960s before the recession. This has raised fears that america’s economy could go into recession.
If the U.S. economy goes into recession, its impact will be visible all over the world. Technically, a decline in GDP for two consecutive quarters is called a recession.
Meanwhile, Us Federal Reserve Chairman Jerome Powell said there was no hope of a rate cut at the moment. “The phase of policy change is still going on and nothing can be said about its impact on the economy,” he said. We are waiting now. ’
President Donald Trump’s tariff policy will have some impact on the economy, but it remains to be seen how much impact it will have. Trump has called for a reduction in interest rates. Several Fed officials have also supported his demand. – Agency
