Where the Comment is King

THE NEWS COMMENTER

VOTE  (0)  (0)

Investment banks are sounding the recession alarm — and Main Street is starting to fret about economic slowdown as well

Added 06-20-22 04:14:02am EST - “Consumer sentiment polls plummeted as Wall Street banks warned that the Fed's latest interest rate hikes could lead to a recession.” - Markets.businessinsider.com

CLICK TO SHARE

Posted By TheNewsCommenter: From Markets.businessinsider.com: “Investment banks are sounding the recession alarm — and Main Street is starting to fret about economic slowdown as well”. Below is an excerpt from the article.

One word dominated Wall Street's coverage of last Wednesday's Federal Reserve meeting: recession.

Equity chiefs like Morgan Stanley's Mike Wilson, economists like Wells Fargo's Jay Bryson, and billionaire investors like Leon Cooperman all warned this week that an economic downturn is becoming more likely.

"[Rising rates] raises the risk of a recession , because you're bringing rate hikes forward even faster," Wilson told CNBC's 'Closing Bell' last week. "The Fed is hiking into a slowdown, and they don't really have a lot of options."

The Fed is hiking interest rates as it looks to tackle soaring inflation. But there's every risk that the resulting economic contraction tips the US into a recession — typically defined as two consecutive quarters of negative growth, accompanied by a rise in unemployment and a sharp slowdown in business activity.

"The more aggressive line by central banks adds to headwinds for both economic growth and equities," the Swiss bank's chief investment officer Mark Haefele said. "The risks of a recession are rising, while achieving a soft landing for the US economy appears increasingly challenging."

Read more...

If you don't see any comments yet, congrats! You get first comment. Be nice and have fun.

Comment Box is loading comments...

CLICK TO SHARE

BACK TO THE HOME-PAGE