Dr Doom Nouriel Roubini Predicts Recession Fear Looms On United States By 2022 End
Recession In US: There may be a recession in the...
Recession In US: There may be a recession in the US by the end of 2022, which may continue till the end of 2023. Due to the coming of recession, there can be a big decline in the American index S&P 500. This is the prediction of economist and Roubini Macro Associates Nouriel Roubini who predicted the 2008 financial crisis. According to Roubini, the coming recession in America can be horrific with a very long drag.
Nouriel Roubini said that even if there is a slight recession, then the S&P 500 can fall by up to 30 percent. If the situation worsens further, the index may fall up to 40. Nouriel Roubini spoke about the housing bubble crash during 2007-08, after which he came to be called Doctor Doom. He said that repaying the loan will become expensive after the increase in interest rates. Many institutions, households, banks, shadow banks and countries may go bankrupt.
Nouriel Roubini had warned that stocks could take a beating due to high debt around the world. He said that it is impossible for the Federal Reserve to achieve the target of 2 percent inflation. He also predicted a 50 basis point interest rate hike by the Federal Reserve in November and December. After which the Fed rate will be 4 to 4.25 percent.
He said that due to the increase in inflation, especially wage hike and the services sector, the Federal Reserve will be left with no option but to raise interest rates. Due to Russia-Ukraine war and China Zero Kovid tolerance policy, prices will increase and growth rate will decrease. They believe that despite the recession, the possibility of any fiscal stimulus governments will give it is very less. Because doing so will increase inflation. They believe that this recession may continue till 2023.
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