Washington (US), April 12: As Americans continue to face rising prices, there are growing concerns from economists who fear rising inflation could spark a recession, according to a report by WGN-TV, a Chicago-based TV station.
Prices in the United States have been rising from the grocery store to the pump, with inflation hitting 7.9 percent in February, yet another 40-year high rate, said the article published on Sunday.
It quoted former Treasury Secretary Larry Summers as saying that Americans may need to brace for a recession as early as next year.
"The painful fact is ... that historically when we've had inflation above four ... and we've had employment below four since World War Two that's been followed by a recession," he said on NBC's Meet the Press. "We were injecting too much demand into the economy."
The only hope is if the U.S. Federal Reserve can find a way to raise interest rates and gently slow down business investment and consumer spending, the report quoted Summers as saying. "It's not going to be easy," he said.