The Council of Economic Advisers is an office that advises the US President President. Here is what they have just written:
A default would send shock waves through global financial markets and would likely cause credit markets worldwide to freeze up and stock markets to plunge,” officials at the White House Council of Economic Advisers warned. “Employers around the world would likely have to begin laying off workers.”
The potential for an ensuing global recession, they wrote, could be worse than the 2008 financial crisis, because it would come as countries continue to struggle to escape the coronavirus pandemic. Adding to the burden, Congress and President Biden would be unable to spend money to prop up the economy until the debt limit, which caps the amount that America can borrow, is raised.
“The federal government could only stand back,” they wrote, “helpless to address the economic maelstrom.”
In other news
According to the World Trade Organization, world trade will continue to increase, especially exports from Asia. They expect the problem with freight across the Pacific to become less pronounced. But Africa will be left behind because of limited access to vaccines.
Global Trade Boom to Continue After Covid-19 Reopening Bounce - WSJ
No comments:
Post a Comment