Warnings of a US recession and global slowdown
Warnings of a US recession and global slowdown
Three commentaries published in the Financial Times over the past week have pointed to the increasing likelihood of a US recession that would have major implications for the global economy.
In an article published on August 10 under the title “The world must prepare for America’s recession”, New York University economist Nouriel Roubini warned that while the US Federal Reserve Board may have been hoping for a “soft landing” when it decided earlier this month to halt its cycle of interest rate rises, the decision has come too late and it now confronts a recession.
“The US recession will be triggered by three unstoppable forces: the housing slowdown; higher oil prices; and higher interest rates. The US consumer, already burdened with high debt and falling real wages, will be hard hit by these shocks,” he wrote.
Three commentaries published in the Financial Times over the past week have pointed to the increasing likelihood of a US recession that would have major implications for the global economy.
In an article published on August 10 under the title “The world must prepare for America’s recession”, New York University economist Nouriel Roubini warned that while the US Federal Reserve Board may have been hoping for a “soft landing” when it decided earlier this month to halt its cycle of interest rate rises, the decision has come too late and it now confronts a recession.
“The US recession will be triggered by three unstoppable forces: the housing slowdown; higher oil prices; and higher interest rates. The US consumer, already burdened with high debt and falling real wages, will be hard hit by these shocks,” he wrote.
posted by A. J. Franklin @ 14:50
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