Customers in a grocery store, USA. File photo WASHINGTON, April 22 Rising inflation in the US and mortgage rates could lead to a recession, according to American experts interviewed by RIA Novosti. Mortgage rates in the US hit a 12-year high last week, house prices set a new record in March. This is happening against the backdrop of the highest inflation in 40 years. «The scenario at the current pace will be to raise interest rates, raise prices and a possible recession, which is unlikely, but not impossible,» Daryl Fairweather, chief economist at Redfin, told RIA Novosti. Professor of Economics and Entrepreneurship Georgia State University's Isabelle Trilbou Monlouis warned that record-breaking companies may refuse to cut prices in the event of a recession. She said people can blame the housing market, gas prices, or supply chain problems, but corporate greed is also the problem. companies that made sure the market could bear a certain price, like airlines introduced baggage fees to fight the 2008 recession and high fuel prices, but they haven't gone away, right?» she said. According to Montlouis, while nominal wages rose, real wages fell. “So we have people who have been working harder for the last two or three years, and they are, in fact, earning less. Significantly less. This is very important for people who were already living paycheck to paycheck,” Monloui said. She noted workers should not count on a salary increase that will absorb inflation.
