Investment division of multinational banking company JPMorgan Chase & Co. – JPMorgan Asset Management – predicted an imminent recession in the US. In this respect Wrote Bloomberg quotes Seamus McGoraine, Head of Interest Rates at the company’s London office.
“Inflation is very high and it will take a recession to bring it down,” he said.
According to McGorain, the US Federal Reserve System (FRS) will cut interest rates in the third quarter (July-September). He noted that the banking crisis in the US “made a recession even more likely”.
A recession is a decline in business activity in a state economy that lasts for six months or more. The main indicator of a recession is the contraction of real GDP for two consecutive quarters.
US Federal Reserve in the first half of May raised base interest rate is 25 basis points, ie up to 5-5.25% per annum.
Earlier on May 17, Twitter owner, SpaceX and Tesla CEO Elon Musk expression The view that this year will be difficult for the world economy may face the bankruptcy of many companies in the global market. One of the reasons for the financial distress experienced by companies may be the increase in key interest rates under the leadership of the US Federal Reserve.