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U.S Headed Towards Recession

The latest Federal Reserve meeting minutes suggest that the U.S. economy is headed for recession as the central bank will remain aggressive in raising rates to cool inflation, says Nigel Green, CEO of the deVere Group. The warning comes as the meeting minutes released last week signal that the U.S. central bank remains cautious on inflation, with officials agreeing that rate cuts shouldn't happen in 2023. “It appears that officials remain hawkish and are especially concerned about the tight labour market,” he says. The latest minutes will give the central bank further support to maintain interest rates higher for longer than had been previously priced-in by the markets. “These minutes dash yet more hopes for an economic soft landing,” he says, and investors are “increasingly concerned that the Federal Reserve could now overtighten and will steer the U.S. economy into a major recession.”

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