On 23 November 2022, a Bloomberg reporter mentioned that the FED staff economists were recommending to policymakers that the chance of a US recession in the following year had risen to 50%, as drop-down consumer spending, more world economic risks, and hike of interest rates. The discussion from the conference mentioned the negative factors which are affecting the US economy as follows; decelerating real private domestic spending, sinking global outlook, and intensity in financial conditions. Nonetheless, when compared with Bloombergs’ economists forecasted this month the chance of a US recession in the following year is 65%, based on the median estimate which puts the probability at 100%.
Moreover, the FOMC still voted to raise interest rates by 0.75% for the fourth time in a row to slow inflation. However, the FED showed a signal that it will slow down to tighten financial policy soon.
Published 30/11/2022
By Windy K.
