The United States is experiencing a massive recession
The United States (US) is certain of a recession after the growth of gross domestic product (GDP) in the second quarter of 2022 contracted 0.6% on an annual basis. This news also made the S&P 500 down 2.11%, the Nasdaq (-2.84%), and the Dow Jones Industrial Average (-1.54%). Some of the flagships like Tesla also fell 6.8%, Apple Inc and Nvidia Corp fell more than 4%, Alphabet (Google Parent) shares 2.6%, META (-3.67%), and so on. From the crypto space, the biggest decline was experienced by STEPN (GMT) tokens which fell 4%, followed by Helium (HNT) which fell 3.2%, and UNI with a 2.4% decline. Meanwhile, some major assets such as BTC, ETH, BNB, ADA, SOL each only edged up in the range of 1% to 2%. The US itself ensured a recession after in the first quarter of 2022, this country also showed a decline in economic growth of 1.6%. The news of this recession will make the selling of US Treasuries continue because Fed officials did not give any indication the central bank will switch from its hawkish policy.
Fed President, Cleveland Loretta Mester said she did not see any pressure on US financial markets that would change the central bank's policy to reduce inflation due to rising interest rates. Data on the number of Americans filing new claims for benefits fell to a five-month low. This means that the US labor market is still considered resilient during the interest rate tightening process. The US itself recorded the highest inflation in 40 years in June at 9.1% although the last few months began to decline. On the other hand, both the World Bank, the International Monetary Fund (IMF), and the Asian Development Bank (ADB) have repeatedly predicted the dangers of a severe recession that some countries will face in 2023.
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