Despite the Fed’s extraordinary efforts, the sky-rocketing inflation shows no signs of slowing down. Moreover, with hotter-than-expected CPI data in August, the Fed increased interest rates by 75 basis points for the third consecutive time today. The consecutive rate hikes are raising the odds of a recession.
According to the World Bank, the global core inflation rate, excluding energy, could stay at about 5% in 2023, and even a moderate hit to the global economy over the next year could tip it into a recession. “Global growth is slowing sharply, with further slowing likely as more countries fall into recession,” World Bank President David Malpass said.
