Could the US enter a recession?
Hi James and team Do you think the US is at risk of entering a recession this year based on record inflation and rising interest rates, and if so would it follow that Australia would also follow suit. Thanks Alex
The Latest Q&A
Answer
Hi Alex,
We don’t believe a recession is likely but macro events including COVID, supply chain disruptions and now the Ukraine is likely to weigh on global economic growth but not to the extent that we will see a recession. The key takeaway for us though from a financial markets perspective is that we believe bond yields have gotten ahead of themselves and yields will actually fall from current levels.
