Source: Markets Insider —
The Federal Reserve’s own economists have just warned the US could suffer a recession this year.
They’ve raised the alarm about stocks and real-estate prices — which they say are aggressively valued and could plummet — and said painfully high inflation could persist into 2024.
Depressed levels of household spending and higher borrowing costs could cause the US economy to contract, the central bank’s staff cautioned, according to minutes from the Fed’s February meeting.
“The staff still viewed the possibility of a recession sometime this year as a plausible alternative to the baseline,” the minutes read.
Back in November, the Fed’s experts said it was almost a coin toss whether the US economy would grow or suffer a prolonged downturn in 2023.
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