China News Service, December 30. According to a Reuters report on the 30th, the latest research report of the Federal Reserve Bank of St. Louis in the United States showed that more than half of the states in the United States are showing signs of slowing economic activity.
The figure crossed a key threshold that usually heralds a recession.
The research report was officially released on the 28th.
Economic activity declined in October in 27 U.S. states, as measured by the Philadelphia Fed Index, which is enough to signal a looming recession, the St. Louis Fed said.
The short but deep recession in the spring of 2020 was preceded by economic downturns in 35 U.S. states, the report authors noted.
In addition, the Federal Reserve Bank of San Francisco also released another report earlier this week, delving into the possibility of a recession in the United States in the next few months.
Changes in the unemployment rate could also signal a looming recession, the report noted, and that the signal provides more short-term predictive value than the closely watched bond market yield curve.
The report said the current unemployment rate points to the onset of a recession in about eight months.
As of December, the Fed forecast that the unemployment rate would jump to 4.6% within a year in 2023.
The Federal Reserve has taken a tough line on inflation, raising interest rates aggressively, raising concerns about the prospect of the economy slipping into recession.
Many critics argue that the central bank focuses too much on inflation and not enough on American employment.