16/06/2022
🇺🇸US Faces Fed-Triggered Recession That May Cost US Faces Fed-Triggered Recession That May Cost Biden
Soaring prices are hurting Americans. The cure is going to hurt, too. It may take a recession to stamp out inflation -- and it’s likely to happen on President Joe Biden’s watch. A downturn by the start of 2024, barely even on the radar just a few months ago, is now close to a three-in-four probability, according to the latest estimates by Bloomberg Economics.
On Wednesday the Fed delivered its biggest interest-rate hike in almost three decades, as it takes the fight against inflation into overdrive. When central bankers try this hard to slow the economy down, they often end up tipping it into outright reverse.
Investors are rushing to bet on that kind of bad outcome, sending stocks and bonds plunging. American households, watching their retirement funds dwindle as their grocery and utility bills soar, say they feel gloomier about the economy than at any time in more than four decades. Bloomberg
Soaring prices are hurting Americans. The cure is going to hurt, too. It may take a recession to stamp out inflation -- and it’s likely to happen on President Joe Biden’s watch. A downturn by the start of 2024, barely even on the radar just a few months ago, is now close to a three-in-four probability, according to the latest estimates by Bloomberg Economics.
On Wednesday the Fed delivered its biggest interest-rate hike in almost three decades, as it takes the fight against inflation into overdrive. When central bankers try this hard to slow the economy down, they often end up tipping it into outright reverse.
Investors are rushing to bet on that kind of bad outcome, sending stocks and bonds plunging. American households, watching their retirement funds dwindle as their grocery and utility bills soar, say they feel gloomier about the economy than at any time in more than four decades. Bloomberg / Exness.
