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‘This is unprecedented’: U.S. economy on brink of recession with inflation, aggressive interest rate hikes

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A U.S. economic recession is increasingly likely and could be a potentially treacherous path toward curtailing soaring inflation and record-high gasoline prices.

The May Consumer Price Index showing an 8.6% inflation rate and record high gasoline and diesel prices across the country are fresh economic cannonballs across the bow of the Federal Reserve, Biden administration and Wall Street, according to economists.

Consumer Prices

A used car lot is shown Friday, June 10, 2022, in Salt Lake City. The prices of gas, food and most other goods and services jumped in May, raising inflation to a new four-decade high and giving American households no respite from rising costs. Contributing to that surge were much higher prices for everything from airline tickets to restaurant meals to new and used cars. (AP Photo/Rick Bowmer)

Japan Financial Markets

A man wearing a protective mask rides a bicycle in front of an electronic stock board showing Japan's Nikkei 225 and New York Dow indexes at a securities firm Monday, June 13, 2022, in Tokyo. Shares sank in Asia on Monday after a report that U.S. inflation worsened last month sent stocks reeling on Wall Street. (AP Photo/Eugene Hoshiko)

Federal Reserve

Federal Reserve Board Chair Jerome Powell speaks during a news conference at the Federal Reserve, Wednesday, May 4, 2022 in Washington. The Federal Reserve is battling 40-year highs with inflation. (AP Photo/Alex Brandon)