Sharply higher interest rates, red-hot inflation and a prolonged energy crisis are leading to conviction that the world economy is headed inexorably towards recession.
It's a risk U.S. Treasury Secretary Janet Yellen and European Central Bank chief Christine Lagarde have acknowledged even if neither considers it a baseline scenario. Federal Reserve chief Jerome Powell rejects the notion.Paul O'Connor, head of the multi-asset team at Janus Henderson, notes that since 1955 "the U.S. economy has always experienced a recession within two years from every quarter in which inflation was above 4% and unemployment was below 5%, as they are today.
Central banks are jacking up interest rates. The Fed just delivered a second 75 basis-point increase on Wednesday to tame 9.1% inflation.The IMF says a complete supply cut to Europe by year-end and another 30% drop in Russian oil exports would see European and U.S. growth at virtually zero. For Citi analysts, the July PMIs confirm that Germany is in recession, with the euro area not far behind.
Österreich Neuesten Nachrichten, Österreich Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
IMF: Limited Impact From Crypto Crash But Global Recession LikelyThe IMF has played down the impact of the crypto market crash on global financial stability but warned of more gloom and uncertainty ahead.
Weiterlesen »
IMF warns global economy teetering on brink of recession as it slashes growth outlookThe International Monetary Fund warned the global economy could soon fall into a recession amid a confluence of threats including inflation and the war in Ukraine.
Weiterlesen »
IMF Slashes Global Growth Forecast: Teetering on the Edge of a Global Recession'The outlook has darkened significantly since April. The world may soon be teetering on the edge of a global recession, only two years after the last one,' the IMF's chief economist said. | Economy
Weiterlesen »
S&P 500 and Nasdaq 100 Fall on Recession Fears ahead of Fed Decision. What’s Next?U.S. stocks sold off Tuesday amid growing fears that the economy is headed for a hard landing. Disappointing data, from consumer confidence and International Monetary Fund's macroeconomic projections, reinforced the negative narrative.
Weiterlesen »
'Edge of a global recession': IMF slashes world economic forecast againIn a report released Tuesday, the International Monetary Fund once again lowered its world economic forecast as it predicted major slowdowns in the three biggest economies: the United States, China and Europe
Weiterlesen »
Feds Launch 'Heat.Gov,' a Website to Help You Navigate Worsening Heat WavesThere’s a new website that federal officials hope can help people and local governments beat the heat and keep it from getting deadly.
Weiterlesen »