While economic indicators remain stable or are even on the rise, worry over interest rates, inflation, and continued supply chain issues have many leaders and economists predicting a recession. That’s according to Brian Long, director of Supply Management Research in the Seidman College of Business at Grand Valley State University. Long says multiple factors create talk of a recession, including inventory build-ups throughout the entire supply chain, transportation issues, lack of truck drivers and the COVID-19 crisis in China.
“Given that China has locked down again, our entire supply chain system has had a very, very big jolt over the last couple of years or so, and unfortunately, it’s not straightening out,” Long said.
Long says our ports are still not back to normal yet and our transportation systems still show a worker shortage. He’s he’s concerned that the Fed will have to crank up interest rates even faster and higher than they are currently to bring the economy back in check.
