‘Black Monday’ on Wall Street as Stocks Tumble, Enter Bear Market – Opinion

Joe Biden’s Economy started to come into full focus Monday as the Dow Jones Industrial Average sank 800 points, more experts predict a recession in the next year, and the S&P 500 officially hit a bear market:

U.S. stocks tumbled across the board early Monday with the S&P 500 hitting a fresh bear market, down 20% from its January peak, as investors wrestle with rising recession fears and as bond yields climb. The 10-year Treasury yield hit 3.27% – the highest since May 2011. The commodities market saw oil at $119 and gasoline prices hovering around $5.01 each AAA.

On Monday, the consumer expects continued rise in inflation.

Median expectations are that it will be the Inflation rate will rise 6.6% one year from now, matching an 11-year-high recorded in March, according to the New York Federal Reserve’s Survey of Consumer Expectations, which dates back to 2013. Three years from now, consumers see inflation hitting 3.9% – unchanged from last month.

The Federal Reserve Board is meeting this week, and they’re expected to raise interest rates. In addition to rate increases this week, they’re expected to raise rates again in July, September, and November – and this week’s increase could be a big one:

Some traders even speculated that Wednesday’s Fed meeting might see it raise its key short term interest rate by three-quarters percent. That’s triple the usual amount and something the Fed hasn’t done since 1994. CME Group reports that traders now have a 33% chance of such a massive hike, as opposed to 3% one week ago.

The Associated Press’ initial report revealed that they were not being truthful with their analysis. (emphasis mine).

The S&P 500 was 3.3% lower in investors’ first chance for trading after getting the weekend to reflect on the stunning news that inflation is getting worse, not better.

Amazing news: inflation is not getting better, but worse. As shown in the New York Fed’s Survey of Consumer Expectations, consumers have been predicting continued high inflation, and pricing news over the last months has shown rising costs and consumer pricing, especially for necessities like food and gasoline.

Although some economists have warned of a possible recession starting in 2022, new research shows that 70% of macroeconomics experts polled at the start of June think that a recession will occur officially by 2023. Forbes

This will likely happen next year, according to a new survey of 49 U.S. macroeconomics experts conducted at the beginning of June by the Financial Times The University of Chicago’s Initiative on Global Markets is an economic research and policy center.

The U.S. will officially be in a recession when the National Bureau of Economic Research (NBER) identifies a significant decline in economic activity lasting over an extended period of time, usually thought to be two fiscal quarters. The economy already went through a dip in the first quarter of 2022, when GDP fell by 1.5%. In September, the Bureau of Economic Analysis will publish numbers for the next quarter.

Nearly 70% percent of economists polled believe that the NBER would make that call in 2023. 38% predicted that there will be a recession during the first half of the year and 30% for the second.

While the war in Ukraine has affected commodity prices, overall terrible monetary policy from the Biden administration — including a lack of effective action by the Federal Reserve earlier this year — is at the root of our economic woes.

Black Monday is a hot trend for a reason.

– The #stockmarketcrash is getting worse
– Inflation is at record highs
– Experts now predict a recession in the USA

Thanks, @TheDemocrats. It is not your fault.

— Stephen Rowe (@Rowebotz) June 13, 2022