War, and inflation, and stagflation, andFed rate hikes, and a possible recession… Oh my!

Talks of a recession have been circling around for weeks, and it doesn’t seem like things will die down soon.

Moody’s Analytics Chief Economist Mark Zandi told CNN that the U.S. economy has at least a one-in-three chance of sinking into a recession over the next 12 months.

On CNBC’s “Closing Bell Overtime,” investor Carl Icahn warned that a recession or even worse could be coming.

He said that surging inflation is a major threat to our economy and that the Russia-Ukraine war is only adding to economic uncertainty. He also said he doesn’t have faith that the Fed will be able to gracefully fight inflation.

“I really don’t know if they can engineer a soft landing. I think there is going to be a rough landing… Inflation is a terrible thing when it gets going.”

He’s not alone in that sentiment. Almonty Industries CEO Lewis Black told Kitco News that if the Fed doesn’t take control of inflation soon and quickly, it could take a decade to get it under control.

“They have to get inflation under control. If it gets out of control, it can take you a decade. It is imperative to act now — stop spending money and reduce the amount of money you circulate as a government. And they need to raise rates. That’s the only tool that works.”

On Monday, Fed Chairman Jerome Powell did vow that the Fed was ready to take tough action on high inflation.

He said, “We will take the necessary steps to ensure a return to price stability. In particular, if we conclude that it is appropriate to move more aggressively by raising the federal funds rate by more than 25 basis points at a meeting or meetings, we will do so. And if we determine that we need to tighten beyond common measures of neutral and into a more restrictive stance, we will do that as well.”

After Powell’s remarks, Goldman Sachs said it now expects the Fed to hike interest rates by 50 basis points at both the May and June meetings.

All of these concerns have caused gold prices to rise. The upward trends in gold have caused Singapore’s United Overseas Bank to change its gold forecast.

UOB now sees the yellow metal trading at $2,100 an ounce in Q2, $2,150 an ounce in Q3, and $2,200 an ounce in Q4.

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