Recession Signal: The U.S. Economy is Flashing an Alarm Bell, Says Economist Steve Hanke

Recession Signal Alert

A recession appears imminent for the U.S. economy by early 2025, as noted by veteran economist Steve Hanke. He points to a notable contraction in the money supply, which is a rare signal that has flashed only four times in the last century.

Causative Factors

• Contraction in Money Supply: Hanke emphasizes that this contraction often precedes economic downturns.
• Historical Context: The last four signals of similar nature led to significant recessions.

Potential Impact

1. Economic Slowdown Potential: If the trend continues, expect measurable declines in consumer spending.
2. Market Reaction: Financial markets may experience volatility as uncertainty looms.