The International Monetary Fund (IMF) is warning that when it comes to inflation, the worst is yet to come for many people. The financial agency also warns that 2023 will feel like a recession. Many big banks say a recession will come next year. Economist Nouriel Roubini—aka Dr. Doom—is warning that stocks could drop 30% during that time. “In a short and shallow recession, typically, from peak to trough, the S&P 500 falls by 30%,” Roubini told Bloomberg. “So even if we have a mild recession…you’ll have another 15% leg down…If we have something more severe than a short and shallow recession, but not as severe as the GFC…you have another 25% downside potentially.”

Reuters/Mark John
‘The worst is yet to come’: the curse of high inflation

Globally, people are experiencing inflation at levels not seen for decades as prices surge for essentials like food, heating, transport, and accommodation. And though a peak could be in sight, the effects may yet get worse.

How did we get here? In two words: pandemic and war.

A long and comfortable period of scant inflation and low-interest rates ended abruptly after COVID-19 struck, as governments and central banks kept locked-down businesses and households afloat with trillions of dollars of support.

You can read the full story, here.

Fortune via Yahoo Finance/Will Daniel
‘Dr. Doom’ Nouriel Roubini says a severe recession will cause stocks to drop 25%—and warns zombie

They call him “Dr. Doom” for a reason. Nouriel Roubini, professor emeritus at New York University’s Stern School of Business and CEO of Roubini Macro Associates, has a history of making pessimistic—but often prophetic—economic forecasts.

The man who spotted the 2008 U.S. housing bust and subsequent Great Financial Crisis (GFC) has warned throughout 2022 that a U.S. recession is inevitable and a global stagflationary debt crisis will follow.

This week he broke down how that might affect stocks, reiterating calls for a sharp drop in the S&P 500, despite the blue-chip index’s recent rebound from its October low.

You can read the full story, here.

CNBC/Hugh Son
‘There is a slowdown happening’ – Wells Fargo, BofA CEOs point to cooling consumer amid Fed hikes

American consumers are tapping the brakes on spending as the Federal Reserve’s interest rate increases reverberate throughout the economy, according to the CEOs of two of the largest American banks.

After two years of pandemic-fueled, double-digit growth in Bank of America card volume, “the rate of growth is slowing,” CEO Brian Moynihan said Tuesday at a financial conference. While retail payments surged 11% so far this year to nearly $4 trillion, that increase obscures a slowdown that began in recent weeks: November spending rose just 5%, he said.

Read the full story, here.

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