Your Wallet Won’t Like the Latest Forecast
Financial forecasters are saying that, in addition to continued inflation, a recession may be on the horizon.
According to a CNBC report: “The probability of a recession in the U.S. was raised to 33% in the next 12 months, up 10 percentage points from the Feb. 1 survey. The chance of a recession in Europe stands at 50%.”
Experts debated over whether the recent inflation surge would prompt interest rates to rise faster or slower.
“The tax impact of higher commodities prices is likely to slow the pace of hiking more than the inflationary impact is to accelerate it,” said Guy LeBas, chief fixed income strategist at Janney Montgomery Scott.
“I expect six quarter-point rate hikes from the Fed in 2022. If CPI reaches 9% in the March or April report, the Fed might be pressured into a 50-basis point hike in May,” said Rob Morgan, senior vice president at Mosaic.
Forecasters see growing chance of a recession as Fed hikes rates this year to fight inflation