Central banks worldwide have been raising rates to combat surging inflation. While many economists expect that inflation may have peaked, Federal Reserve Vice Chair Lael Brainard warned against complacency. “Inflation is very high in the United States and abroad, and the risk of additional inflationary shocks cannot be ruled out,” she said.
Economist Nouriel Roubini, who correctly predicted the 2008 financial crisis, sees a “long and ugly” recession in the US and globally occurring at the end of 2022. This recession could last all of 2023 and lead to a sharp correction in the S&P 500. The economist further said achieving a 2% inflation rate without a hard landing is going to be “mission impossible” for the Federal Reserve.
