The Federal Reserve Chair Jerome Powell’s gloomy speech last week in Jackson Hole, Wyoming, warned investors of the Central Bank’s utmost commitment to bring down inflation. Even after a total of 2.25 percentage points of rate hikes, Powell confirmed that this is “no place to stop or pause.” He admitted that the policies would bring “some pain.”
Economist Stephen Roach believes that a deeper downturn might be on the horizon after the first half’s negative economic growth. “We’re going to have a cumulative drop in the economy [GDP] somewhere of around 1.5% to 2%. And, the unemployment rate is going to have to go up by 1 to 2 percentage points in a minimum,” said Roach.
