Many economists contend that the question of when an American recession will begin, rather than whether, is the more important one.
The slump, according to Jamie Dimon, CEO of JPMorgan, may begin as soon as six months from now. Larry Summers, a former Treasury Secretary, predicted it would happen sooner.
To reduce inflation, according to Summers, the unemployment rate in the United States must be between 5.5% and 7.5%.
This implies that thousands of jobs will be lost the next year. According to a recent Bank of America research, 150,000 jobs will be lost per month at this rate.
According to Michael Gapen, head of U.S. economics at Bank of America, in an interview with CNN, "The idea is a rougher landing rather than a gentler one.
"We anticipate that the first half of next year will see the start of a recession." The fear of a landing has already begun to circulate.
The underlying assumption of the projection is that Americans won't be able to afford discretionary expenditure due to inflation, which is expected to reach above 8% each month.
With basic needs, some middle-class and lower-class families could suffer.