The Daily Money: 100% Chance of Recession

82% of those surveyed believe the country is facing an unprecedented housing affordability crisis.

Advertisement Read in browser Read in browser The Daily Money ALL THE MONEY NEWS YOU NEED TO KNOW Fri Jun 16 2023 Swapna Venugopal Ramaswamy |  National Housing and Economy Correspondent @SwapnaVenugopal Happy Friday! This is Swapna Venugopal Ramaswamy bringing you today's top Daily Money headlines. When it comes to financial news, two words we haven't been able to escape this year are inflation and recession. Inflation is a reality, but fears of recession have been on people's minds. Deutsche Bank sees a 100% probability the U.S. will have one.  The short-term benchmark fed funds rate stands at the highest level since 2006, but inflation's still  twice the Fed's goal. Fed Chairman Jerome Powell warned after the Fed's policy committee meeting on Wednesday more rate hikes will likely be necessary to further cool inflation.  But that, likely, will cause a recession, says David Folkerts-Landau, Deutsche Bank chief economist.  "The U.S. is heading for its first genuine policy-led boom-bust cycle in at least four decades," he writes. "The inflation we see was induced largely by expansive fiscal and monetary policy, and the aggressive rate hikes needed to tame that have now materialized. Avoiding a hard landing would be historically unprecedented."  Homebuying and selling in an uncertain time Getty Images Ironically, a recession may be something most prospective homebuyers want. Buying a home has become so unaffordable that most prospective homebuyers wouldn't mind a recession if it meant lower mortgage rates, according to a new survey. Sixty four percent of Americans say they are "ready for a recession" if they are better able to afford buying a home, according to a study conducted by Harris Poll on behalf of Credit Karma, designed exclusively for USA TODAY. Not surprisingly, 82% of those surveyed believe the country is facing an unprecedented housing affordability crisis. 📰 More stories you should not miss:📰  70,000 new cars are stuck at factories as consumers face delays: Here's what's going on Juneteenth is the next federal holiday in 2023. Will the stock market be closed? Global hacking campaign: Energy Department and other agencies hit by wave of cyberattacks Each weekday, The Daily Money delivers the best consumer news from USA TODAY. We break down financial news and provide the TLDR version: how decisions by the Federal Reserve, government and companies impact you. Is the stock market closed on Juneteenth? In recognition of the federal holiday, the Nasdaq and New York Stock Exchange will close at 4 p.m. Eastern on Friday and reopen at 9:30 a.m. Tuesday. READ MORE Advertisement It's not just inflation. Taxes also cut into Social Security benefits. It's not just inflation that's cutting the buying power of your Social Security benefit. Taxes are, too. Here's how. READ MORE Detroit automakers have a new, big problem that's stalling deliveries of cars Detroit carmakers have increased production, but now they struggle to get their finished cars from factories to U.S. dealerships. Here's why. READ MORE Johnsonville recalls more than 42,000 pounds of sausage links Sausage-maker Johnsonville is recalling some "Beddar with Cheddar" links that may be contaminated with plastic fibers. READ MORE 'Americans are dying': Poor People's Campaign wants to address poverty Hundreds of Poor People's Campaign leaders are heading to Capitol Hill next week to demand lawmakers address death by poverty in the United States. READ MORE If recession means lower mortgage rates, homebuyers welcome it 82% of those surveyed believe the country is facing an unprecedented housing affordability crisis. READ MORE GM CFO: Cost cuts permanent to close profit gap between EVs and ICE cars. GM CFO said leaders continue to cut costs across the company to be prepared if there's a downturn and mindful that EVs are not widely profitable yet. READ MORE What's open and closed on Juneteenth 2023 Juneteenth is Monday, and some gyms, stores, restaurants and other businesses may be shuttered or operate with reduced hours. READ MORE A dress code for flying? Yes, and here's why we need one now Dressing up for your flight can benefit you in several ways. So even if your airline doesn't adopt a dress code, maybe you should consider it. READ MORE Doctor shares how he helped during an inflight medical emergency JooWon Lee shares how he and other passengers assisted during a medical emergency on their flight from Seoul to Atlanta. READ MORE Advertisement Sign up for the news you want Exclusive newsletters are part of your subscription, don't miss out! We're always working to add benefits for subscribers like you. SEE ALL NEWSLETTERS ➔ SEE ALL NEWSLETTERS ➔ Newsletters   |    eNewspaper   |   Crosswords Follow Us Problem viewing email? View in browser Unsubscribe  •   Manage Newsletters  •  Terms of Service  •   Privacy Policy/Your California Privacy Rights  •  Privacy Notice  •   Do Not Sell My Info/Cookie Policy  •  Feedback