Central bankers worldwide have warned they will have to hold interest rates at higher levels for longer despite recent progress in the fight against inflation. Following the Fed’s indication of more rate hikes next year, the risk of a recession has increased notably.
In addition, the Federal Reserve predicted in its economic forecast that the rate of unemployment, which is 3.7% currently, would increase to 4.6% by the end of next year. Those numbers mean about 2 million Americans would have to lose their jobs, and the unemployment rate has never risen that much outside of a recession.
