Think of Russia, the United States is on the verge of an economic recession

WASHINGTON – United States of America (USA) predicted to experience economic recession due to the central bank or the Federal Reserve (The Fed) making aggressive steps to reduce inflation . As is known, American inflation has soared to its highest level in four decades.

Bank of America (BofA) chief investment strategist Michael Hartnett warned that a spike in consumer prices could trigger an economic downturn in the US. Coupled with the increasingly hawkish stance of the central bank to fight inflation, which is at its highest level since 1982

“The ‘inflation shock’ is getting worse, the ‘price shock’ is just getting started, the ‘recession shock’ is coming,” Hartnett wrote.

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Policymakers raised interest rates by a quarter of a percentage point in March. In fact, it has since signaled support for a faster half-point gain at the May meeting.

Rising inflation and low unemployment, the pandemic, supply chain problems, the war between Russia and Ukraine with energy implications, plus election turmoil in the US and elsewhere – such as France – are sentiments.

Market participants are pricing in a more than 80% chance of a hefty half-point rate hike when policymakers meet next month.

“If we conclude that it is appropriate to move more aggressively by raising the federal funds rate by more than 25 basis points at the meeting or meeting, we will,” Federal Reserve Chair Jerome Powell said recently.

“And if we decide that we need to tighten beyond the usual neutral measures and go into a more restrictive stance, we will do that too.”

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