Economists at Largest Banks Predict Recession in 2023
The Wall Street Journal reports that more than two-thirds of economists at 23 of the largest primary dealers forecast a recession this year. Factors in the latest forecasts include tightening lending standards, a waning housing market and declining household savings. However, the Federal Reserve’s continued hike of interest rates to combat inflation, including seven increases in 2022, is cited as the main contributing driver. Additionally, most of the surveyed economists expect the higher rates to push the unemployment level above 5%. Read more.