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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”:
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“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”:
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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
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