Rising geopolitical tensions surrounding the Ukraine-Russia war have worsened the already distressed global supply chain, contributing to U.S. inflation hitting a 40-year high. The Fed's continuing attempts to combat the inflationary pressures by raising interest rates and reducing the size of its balance sheet are expected to pump the brakes on the U.S. economy.
The negative GDP in the first quarter of 2022, rising supply disruptions due to extended COVID-19 lockdowns in China, and high energy prices have further fueled the economy's chances of slipping into recession. According to JPMorgan CEO Jamie Dimon, the Fed's chances of controlling inflation without instigating a recession stand only at 33%.
