The new date is Jun 20, 2022.
Just days after the Federal Reserve announced a hike in interest rates, a Japanese investment bank became the latest to predict a recession in the U.S.
A number of major global banks have predicted an upcoming US recession.
According to multiple outlets, economists from Nomura warned that amild recession is now more likely because of the Fed's recent moves.
The US economy is expected to contract by 1% next year, compared to an earlier prediction of 1.3% growth, as inflation is likely to remain elevated throughout the rest of the decade.
The first bank to project an upcoming recession in late 2023,Deutsche Bank, updated its forecast on Friday and now expects a 3.1% contraction of the GDP in the third quarter of 2020.
Two days before the Federal Reserve's rate hike, Morgan Stanley CEO James Gorman appeared to be slightly more optimistic, placing the odds of a downturn at "50-50"
The chief economist at Moody's said in a recent note that avoiding a recession would require "very deft policymaking from the Fed and a bit of luck."
The risk of a recession in the next 24 months was projected in a note published in April by Goldman.
President Joe Biden insisted in an interview last week that the U.S. is in a better position to fight inflation than any other nation. Biden told the American people not to believe a warning and to wait and see who is right.
The Federal Reserve raised interest rates by 75 basis points. The rate hike that was enacted last week was the most significant in 28 years. The annual inflation rate in the U.S. jumped to 8.6% in May, the largest 12-month increase in consumer prices in over four decades. Goldman says it expects another hike in July.
The major bank is the first to forecast a recession.
The US is likely to experience a recession this year.
All Rights Reserved © 2024
