MSU Expert: 2022 Economic Outlook

Script:

Charles Ballard, professor in the Department of Economics at Michigan State University, discusses the 2022 economic outlook. He says right now, it certainly appears that the American economy is expanding. People are buying, goods are being produced and this should continue into 2022. Of course, Ballard says, things can change. Inflation is higher now than it’s been since the late 1970s and early 1980s. But Ballard said he and many economists believe inflation will moderate in 2022. If inflation doesn’t moderate, the Federal Reserve will likely step in restrict credit, which historically has often led to a recession. In addition, economic indicators for this holiday season are good but of course, there are dangers. Ballard says we don’t have the coronavirus under control yet and the latest Omicron variant could do substantial economic damage.