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Forbes Advisor: Is The U.S. Headed For Another Recession?

Taylor Tepper | March 24 , 2022

The COVID-related recession of early 2020 was the shortest U.S. recession on record. The question now is how long the post-COVID economic rebound can last, and whether we might even be heading for another recession. 

The Federal Reserve recently raised interest rates for the first time since 2018 — to a range of 0.25 percent to 0.50 percent — and suggested that the federal funds rate could climb to 2 percent or higher by the end of 2022. In forecasts released with the rate decision, Fed economists lowered their economic growth projections for the year. 

Meanwhile, high inflation is dampening consumers’ moods, while the Russian invasion of Ukraine has pushed oil prices higher worldwide, further threatening economic growth.

“The Fed has a narrower path to be able to address inflation and not kick us into a recession,” says Mace McCain, chief investment officer at Frost Investment Advisors. “If the Fed were to follow through on these forecasted rates, we think the risk of a recession would be much higher than the market currently expects and could represent significant downside risks.”

Excerpted from Forbes Advisor on March 24, 2021. To read full article, click here.

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