Invesco Strategist Warns the Fed Is ‘Playing a Dangerous Game’ That Could Lead to ‘Significant Recession’ – On Bloomberg’s What Goes Up podcast last week, Kristina Hooper, the company’s chief global market strategist, discussed her views on the American economy. As of September 30, Invesco, an independent worldwide investment management company, had approximately $1.3 trillion in assets under management (AUM). More than 8,400 people are employed by the company across 26 countries.
Hooper, who has 21 years of expertise in the investment industry, noted that the stock market has become increasingly unpredictable as the Federal Reserve works to combat inflation. She highlighted that the central bank has signaled that it will not relent until inflation is under control, regardless of the economic consequences. She noted that the Fed may increase interest rates by an additional 75 basis points at the November meeting of the Federal Open Market Committee (FOMC) and again in December.
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The Invesco chief global market strategist cautioned: “75 is the new 25. When you are raising rates in 75-basis-point increments and you’re not giving any time for it to process through and make its way through into the data, you’re playing a dangerous game.” She concluded: “The more you’re doing it, the more likelihood you create of having a recession — and a significant recession.”
Numerous people have warned about an economic downturn. A recent survey reveals that 98% of chief executives are prepared for a recession in the United States, while 99% are preparing for one in the European Union. Elon Musk, the CEO of Tesla, predicted that the recession might last until spring of 2024. David Solomon, the chief executive officer of Goldman Sachs, believes a recession is likely and advises investors to be cautious. In six months, according to JPMorgan Chase CEO Jamie Dimon, a recession could hit the U.S. economy.
Jim Rogers, a renowned investor, has warned that the current economic downturn will be the worst in his lifetime. Peter Schiff, a gold bug and economist, believes that the Federal Reserve’s actions could lead to a severe recession as well as market collapses and a massive financial crisis.
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