The 8.3% year-over-year increase in August CPI makes the case stronger for the Fed to aggressively raise interest rates. Vanguard expects the benchmark lending rate to end this year at 3.75% and 2023 at 4.25%. Also, the investment management company has estimated a 65% chance of a recession in 2023.
Steve Hanke, professor of applied economics at Johns Hopkins University, said, “We’re going to have one whopper of a recession in 2023.” Amid the growing recession fears, a survey last month showed more than half of all U.S. companies are planning layoffs as they brace for an economic downturn.
