US Economy Slows Sharply and Risks Recession Amid Rate Hikes

Consumer spending surged while business investment and residential housing declined in Q1 2023.
The Federal Reserve's aggressive interest rate increases to curb inflation have battered the economy, especially the housing market.
Banks have tightened lending standards, making it harder for companies and consumers to borrow.
Economists predict the economy will deteriorate rapidly in Q2 2023 and forecast a 99% chance of recession within the year.
The economic slowdown poses a political challenge for President Biden ahead of the 2024 election.