The Clap Multinational investment bank Goldman Sachs says the likelihood of a recession in the coming two years stands at 35%.
You should know… The Fed, & most central banks, have two main goals: to decrease unemployment, & control inflation. However, popular opinion says inflation & unemployment tend to have an inverse relationship.
Now… The Fed is tightening financial conditions by raising interest rates to tame soaring inflation. The trick here is to tighten financial conditions just enough to reduce job openings, but not raise unemployment too high.
While odds of a recession have been on the rise, “soft landings” for the economy have been more common in recent years.