{"id":19711,"date":"2023-04-11T07:55:27","date_gmt":"2023-04-11T07:55:27","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/strategist-expects-us-recession-by-year-end-fed-tightening-to-drag-down-economy-economics-bitcoin-news\/"},"modified":"2023-04-11T07:55:27","modified_gmt":"2023-04-11T07:55:27","slug":"strategist-expects-us-recession-by-year-end-fed-tightening-to-drag-down-economy-economics-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/strategist-expects-us-recession-by-year-end-fed-tightening-to-drag-down-economy-economics-bitcoin-news\/","title":{"rendered":"Strategist Expects US Recession by Year-End, Fed Tightening to Drag Down Economy \u2013 Economics Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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Investment bank MPS Capital Services has warned that the U.S. economy will be in a recession by year-end. The firm\u2019s strategist predicts that the Federal Reserve will raise interest rates by an additional 25 basis points, warning that the central bank\u2019s monetary tightening \u201cwill drag down on the economy.\u201d<\/strong><\/p>\n

Strategist\u2019s Recession and Rate Hike Predictions<\/h2>\n

Luca Mannucci, head of Market Strategy at MPS Capital Services, has warned that the U.S. will be dragged into a recession by year-end and the U.S. dollar will plunge as much as 5% against other currencies in the second half of this year, Bloomberg reported Thursday.<\/p>\n

MPS Capital Services is an Italian corporate and investment bank, part of the banking group that includes Banca Monte dei Paschi di Siena SpA. The strategist was quoted as saying:<\/p>\n

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We expect the recession in the U.S. by year-end \u2026 The tightening of the monetary policy will drag down on the economy.<\/p>\n<\/blockquote>\n

Mannucci predicts that the Federal Reserve will raise interest rates by an additional 25 basis points, while the European Central Bank (ECB) is expected to increase rates by at least two quarter-points.<\/p>\n

He expects the U.S. dollar to depreciate by about 3% against the euro in the coming months due to the Federal Reserve\u2019s interest rate hikes, the news outlet conveyed, noting that the Bloomberg Dollar Spot Index has already dropped 1.6% this year, and it has fallen approximately 10% from September\u2019s record high.<\/p>\n

The MPS strategist further warned that the failure of several regional U.S. banks, along with the issues faced by Credit Suisse, could result in tighter credit conditions and hurt the economy.<\/p>\n

Many people have predicted a recession in the U.S. The president of the Federal Reserve Bank of Minneapolis, Neel Kashkari<\/a>, says the current banking crisis has pushed the U.S. economy closer to a recession. Economist David Rosenberg<\/a> has warned of a \u201ccrash landing\u201d and an impending recession for the U.S. economy. Gold bug Peter Schiff<\/a> cautioned that the U.S. will face a financial crisis and a \u201cmuch more severe recession\u201d than the Fed recognizes. Meanwhile, billionaire \u201cbond king\u201d Jeffrey Gundlach<\/a> foresees \u201cpainful outcomes\u201d in the next recession.<\/p>\n

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fed inflation<\/a>, fed recession<\/a>, Fed tightening<\/a>, Federal Reserve rate hikes<\/a>, Federal Reserve tightening<\/a>, interest rate hikes<\/a>, MPS<\/a>, MPS Capital Services<\/a>, MPS Fed rate hikes<\/a>, MPS recession<\/a>, MPS strategist<\/a>, US Inflation<\/a>, us recession<\/a><\/div>\n<\/div>\n

What do you think about the predictions by the MPS strategist? Let us know in the comments section below.<\/strong><\/em><\/p>\n

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\nKevin Helms <\/h6>\n

\nA student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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