The United States is in the midst of a major financial crisis. This was announced on Friday, July 29, by New York Mayor Eric Adams at an event in Staten Island.
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“Wall Street is crashing and we’re in a financial crisis like you can’t even imagine,” Adams said.
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Adams’s statements contrast sharply with the words of US President Joe Biden that everything is in order with the country’s economy.
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A day earlier, Biden said that the US economy is on the right track, and its slowdown is not surprising after last year’s historic economic growth. He also noted that the Federal Reserve System (Fed) is trying to reduce inflation, so the economy is slowing down. So the American leader commented on the data of the US Department of Commerce on the decline in GDP in the II quarter of 2022 by 0.9% year on year, despite the fact that it was expected to grow by 0.3%.
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On July 27, the US Federal Reserve raised the base interest rate on federal loans for the second time in a row by 75 basis points (bp) to 2.25–2.5% per annum. This was the latest step in the Fed’s efforts to bring down the country’s highest rate of inflation in 40 years. On the same day, the head of the Fed, Jerome Powell, said that he did not believe in a recession, since the Central Bank had made every effort against it.
