US Economy Survey: Companies may cut jobs amid fears of recession

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New York : A survey of US economists has shown that many enterprises may cut jobs and reduce spending on expansion for the first time since the pandemic. This indicates that the Federal Reserve’s push to raise interest rates is beginning to have an effect on the economy and is slowing down.

The survey said that businessmen are worried that the central bank’s decision could have an even bigger impact on the economy and could lead to a recession in the US this year. This survey of the National Association for Business Economics (NABE) was done in January. The respondents gave their companies’ hiring plans an average of seven points below zero, compared to eight in October.

NABE said that businesses will continue to pay higher wages to their employees in view of inflation. NABE President Julia Coronado said in a statement, “The January 2023 NABE Business Conditions Survey finds widespread concern that a recession could begin this year. To combat inflation, the central bank has been aggressively raising interest rates. Its effort is to slow down the pace of the US economy but at the same time prevent it from going into recession. The Federal Reserve may raise interest rates again this week.

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