Deese from the White House said that a stronger dollar (USD) is a sign of the strength of the US economy. However, the ground reality is very different, and fears are rising among the central bank and analysts alike over the health of the US economy. There are reports that the chances of a possible recession in the USA economy are now close to 80%!
Mr. Deese expressed his views in an event where he also said that the global environment is highly uncertain right now. At a time like this, a stronger US Dollar is reinforcing the strength and unique position of the United State's economy. He also mentioned how the recovery process is so complex, and it should be looked at as well!
When asked about how the weaker economies will be affected by spillover effects, he said that the US administration is keeping an eye on the global growth trajectory and all the pockets of weakness that come with it.
Despite the statement from the White House, it is clear that the direction of the US economy is not headed in the right direction. From negative GDP readings to inflation to higher interest rates, there are a lot of things that can further slow down the US economy!
Among all the things which are wrong in the USA economy, the biggest worry is most definitely the higher risk of recession and out-of-control inflation!
High inflation has dented consumer spending, which will spill over into all the main sectors of the economy. Especially the tech sector, in particular, will be effected the most by the high inflation and week consumer spending.
However, it seems that the White House is now trying to close its eyes to reality and is issuing a statement that all is good. But the people of the USA are now already feeling the pain of inflation and all the other economic problems!