(MENAFN- AzerNews)
By Trend
A recession for the United States will be 'long' and 'severe,'
and could bring financial distress 'across the board,' Bloomberg
cited Nouriel Roubini, an economist known for his bearish
tendencies, Trend reports citing Xinhua .
'We are in a sharp slowdown. We've had two negative quarters of
growth in the first half (of 2022),' said Roubini, an Iranian
American economist who accurately predicted the housing bubble
burst in 2008.
'The Fed funds rate should be going well above 4 percent to push
inflation towards 2 percent,' he said. 'If that doesn't happen,
inflation expectations are going to get unhinged, or you'll get a
hard landing.'
The Federal Reserve most recently hiked interest rates another
75 basis points in late July to thwart an inflation rate of 8.5
percent, which followed a similar raise in June, marking the
largest back-to-back increases seen in decades.
Roubini said he felt although inflation may have peaked, he's
unsure of how fast it may fall.
'I don't think the monetary policy is tight enough to push
inflation to 2 percent fast enough,' he said.
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