UBS: Energy shock may hit the US economy harder than expected
New York, March 21 (Hibya) - A report published by Swiss banking group UBS stated that the current energy shock is expected to have a heavier impact on the United States compared to previous periods.
According to CCTV, the US economy has lost its previous “shale oil buffer” that once helped offset high oil prices. Official data shows that the decline in shale oil investments after 2014 makes it harder to balance current price increases.
According to a Wall Street Journal survey, economists’ estimate of the probability of a recession within a year has risen from 27% to 32%. If oil prices reach $138 per barrel, the likelihood of a recession in the US is expected to rise to 50%.
Federal Reserve Governor Christopher Waller warned that if geopolitical conflicts continue, consumer spending will decline and economic growth will slow more than market expectations.
British News Agency
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