BlackRock has released its 2023 Global Outlook, which claims “central bank overtightening makes a recession foretold” and “entails crushing demand to meet constrained supply”:
“The US has a labor supply problem with participation rates well below pre-pandemic levels”, whereas Europe “is suffering an acute energy supply shock”:
Advertisement
“Rapid rate hikes already causing damage” with “the Fed’s current rate hiking campaign is the fastest since 1980”. This “sharp rise in interest rates has started to impact the interest-rate sensitive parts of the economy, like housing starts and home sales”:
