A shallow recession is on the way, strategists warn. Here’s how it could play out

Traders work, as Federal Reserve Chair Jerome Powell is seen delivering remarks on a screen, on the floor of the New York Stock Exchange (NYSE) in New York City, June 15, 2022.

The Federal Reserve will launch a historic attack on inflation in the third quarter as a shallow recession in the U.S. looms.

The Fed raised its interest rates on Wednesday for the first time in two decades. The U.S. consumer price index jumped by an annual 8.6% in May, the hottest inflation print since 1981.

The Fed GDP tracker indicates that a recession is on the horizon and analysts expect the Fed's hiking cycle to further depress economic growth.

The Fed is going to take any action necessary to stem inflation, according to the founder and CEO ofDestination Wealth Management.

Are they going to tip the economy into recession when consumers are already pulling back?

I think we are going to go into recession next quarter because the housing market in the U.S. is locked up with mortgage rates close to 6 percent.

Although a recession is widely accepted, it doesn't mean long-term economic pain is inescapable.

If we raise by 75basis points and then another 75, then there is a belief that there will be a problem in the economy and it will be a shallow recession.

The base case for his firm is for a shallow recession later this year before the Fed cuts rates next year in order to restart the economy. This will allow the U.S. economy to come out of recession, achieve meaningful growth and avoid Stagflation, which is a period of high inflation, slowing growth and high unemployment.

There is a chance of a U.S. recession spreading around the globe.

The vice president and alpha strategies portfolio manager at Loomis Sayles thinks there is a 75% chance of a global recession.

She thinks that the global recession is likely to be shallow and already priced into some assets.

When the worst of inflation has passed, central banks will be able to limit the economic damage, according to Dicenso.

Some people are not as sure that a recession is imminent.

The U.S. economy is better than people think, and there is no evidence of a recession yet, according to Kevin O'Leary.

He told CNBC's "Squawk Box Asia" that he isn't saying we won't get one, but everyone is wrong.

CNBC had a contributor to this report.