Recession

The Federal Reserve is trying to slow soaring inflation and warning of a possible recession, potentially creating more problems for the Biden administration.

Calamos Investments CEO John Koudounis warned that market volatility will continue for “a long time,” but noted that the current situation presents buying opportunities.

The S&P 500 has gotten obliterated in a widespread sell-off this month, and the benchmark index is likely to drop even lower if the economy experiences a return to 1970s-style stagflation, according to Bank of America analysts.

In making the new projection, Wells Fargo noted that "consumer activity has weakened" considerably as the economy confronts new COVID-19 outbreaks and restrictions, sky-high inflation and a strong U.S. dollar, in addition to the Russian war in Ukraine and aggressive Fed monetary policy.

Expectations for future conditions were also bleak: About 60% of executives believe the economy will worsen over the next six months – a stark increase from the previous quarter, when fewer than one-quarter of respondents expected conditions to deteriorate.

Craft Ventures co-founder and general partner David Sacks warned that the U.S. is headed for a recession later this year as markets have been experiencing the "worst downturn since the dot-com crash."

The risk of a recession in the U.S. is growing rapidly, according to Morgan Stanley economists, as stubbornly high inflation threatens to weigh on economic activity.

CEO and corporate recovery expert responsible for turning around General Motors in 2009 blames the Biden administration’s ‘bureaucratic bungling’ and a host of corporate and government ‘screw ups’ for exacerbating the infant formula crisis.

With the Federal Reserve moving rapidly to tame sky-high inflation by aggressively raising the benchmark federal funds rate, Charlie Scharf said that it is likely there will be some economic fallout.

Fed Chairman Jerome Powell and his colleagues initially operated under the assumption that higher inflation was narrowly related to the COVID-19 pandemic, and that once virus cases started to decline, prices would stabilize too.

The index has already plunged in recent weeks as concerns over sky-high inflation, rising interest rates and a darkening economic outlook continue to weigh on the market.

Former Goldman Sachs CEO Lloyd Blankfein said on Sunday that he believes the economy is at risk of possibly going into a recession, as the U.S. Federal Reserve continues to raise interest rates to tackle rising inflation.

DoubleLine CEO Jeffrey Gundlach, known as 'The Bond King,' warned that in 2023 "we may see a real recession.”

The note comes just one day after the Labor Department reported inflation surged higher than expected in April, with prices rising 8.3%, close to a 40-year high.

The Labor Department is releasing the highly anticipated consumer price index on Tuesday morning, providing a fresh look at just how hot inflation ran in April.

Small businesses confidence hovered near a two-year low in April, with the most owners since 1981 reporting that sky-high inflation was their single most important problem, a survey showed on Tuesday.

With inflation at the highest level in 40 years and the Federal Reserve taking increasingly aggressive action to cool consumer demand and prices, the risk of a global recession is on the rise, according to Morgan Stanley economists.

Two former Federal Reserve officials are warning the U.S. central bank will struggle to tame the hottest inflation in four decades without sending the economy into a recession.

The April jobs report revealed another month of robust hiring, likely solidifying the case for the Federal Reserve to pivot toward a mega-sized interest rate hike as it seeks to cool red-hot inflation.

The Federal Reserve ramped up its inflation fight on Wednesday with the biggest interest rate increase in two decades and signaled that additional aggressive moves are likely in coming months.