‘We are nowhere near the bottom,’ top economist says as global markets crater

The New York Stock Exchange on May 3, 2022. Brunello Rosa, the CEO and head of research at Rosa & Roubini, believes there is much more monetary tightening to come from central banks, and more bad news on economic activity.

According to an economist, the stock markets are going to get a lot of heavy selling this summer as central banks try to fight inflation.

There is more monetary tightening coming from central banks, and more bad news on the economy, according to the CEO and head of research atRosa and Roubini.

He told CNBC that it was time for a reappreciation of the economic fundamentals around the world.

It is hard for markets to be optimistic when inflation is going up and growth is going down.

The stock market fell on Thursday and the stock market fell on Wednesday. The initial relief over the Fed's ruling out of more aggressive hikes seemed to have given way to fears that a sharp hiking cycle in order to rein in red-hot inflation could harm economic growth.

The news that a 75-basis-point hike is off the table was welcomed by investors, butRosa warned that there would be several 50-basis-point hikes over the next few months. The Bank of England is the only central bank currently being realistic, after policymakers in London warned of the recession risks that the U.K. economy is facing.

It's clear that all of the central banks are talking tough. He said that lots of tightening will eventually lead to economic contraction.

In the euro zone and the U.S., there will be some form of contraction of economic activity.

The war in Ukraine is expected to last much longer than many market participants are anticipating, and this will add to other challenges such as supply chains issues, soaring inflation, and rising interest rates.

CNBC's Elliot Smith contributed to the article.