Fun

Strategist Expects US Recession by Year-End, Fed Tightening to Drag Down Economy

News Feed - 2023-04-11 03:04:57

Strategist Expects US Recession by Year-End, Fed Tightening to Drag Down Economy


Investment bank MPS Capital Services has warned that the U.S. economy will be in a recession by year-end. The firm’s strategist predicts that the Federal Reserve will raise interest rates by an additional 25 basis points, warning that the central bank’s monetary tightening “will drag down on the economy.” Strategist’s Recession and Rate Hike Predictions


Luca Mannucci, head of Market Strategy at MPS Capital Services, has warned that the U.S. will be dragged into a recession by year-end and the U.S. dollar will plunge as much as 5% against other currencies in the second half of this year, Bloomberg reported Thursday.


MPS Capital Services is an Italian corporate and investment bank, part of the banking group that includes Banca Monte dei Paschi di Siena SpA. The strategist was quoted as saying: We expect the recession in the U.S. by year-end … The tightening of the monetary policy will drag down on the economy.


Mannucci predicts that the Federal Reserve will raise interest rates by an additional 25 basis points, while the European Central Bank (ECB) is expected to increase rates by at least two quarter-points.


He expects the U.S. dollar to depreciate by about 3% against the euro in the coming months due to the Federal Reserve’s interest rate hikes, the news outlet conveyed, noting that the Bloomberg Dollar Spot Index has already dropped 1.6% this year, and it has fallen approximately 10% from September’s record high.


The MPS strategist further warned that the failure of several regional U.S. banks, along with the issues faced by Credit Suisse, could result in tighter credit conditions and hurt the economy.


Many people have predicted a recession in the U.S. The president of the Federal Reserve Bank of Minneapolis, Neel Kashkari, says the current banking crisis has pushed the U.S. economy closer to a recession. Economist David Rosenberg has warned of a “crash landing” and an impending recession for the U.S. economy. Gold bug Peter Schiff cautioned that the U.S. will face a financial crisis and a “much more severe recession” than the Fed recognizes. Meanwhile, billionaire “bond king” Jeffrey Gundlach foresees “painful outcomes” in the next recession. Tags in this story fed inflation, fed recession, Fed tightening, Federal Reserve rate hikes, Federal Reserve tightening, interest rate hikes, MPS, MPS Capital Services, MPS Fed rate hikes, MPS recession, MPS strategist, US Inflation, us recession


What do you think about the predictions by the MPS strategist? Let us know in the comments section below. Kevin Helms


A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography. Economist Harry Dent Expects Biggest Crash in Our Lifetime to Hit Between Now and Mid-June ECONOMICS | 7 hours ago JPMorgan CEO Jamie Dimon Says Banking Crisis Not Over — Warns of "Repercussions for Years to Come" ECONOMICS | 9 hours ago


Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleCommittee Advises SEC to ‘Aggressively Assert Authority’ Over Crypto — Says Virtually All Crypto Tokens Are Securities Next articleTemDAO World Heritage Project Helps the Cultural Sector through Democracy-Fueled Donations Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItDraft Law Regulating Aspects of Crypto Taxation Submitted to Russian Parliament


A bill updating Russia’s tax law to incorporate provisions pertaining to cryptocurrencies has been filed with the State Duma, the lower house of parliament. The legislation is tailored to regulate the taxation of sales and profits in the country’s market ... read more.Bill ‘On Digital Currency’ Caps Crypto Investments for Russians, Opens Door for Payments UAE Airliner Emirates to Launch NFTs and Experiences in the Metaverse Privacy-Centric Monero Plans for July Hard Fork, Plans Include Ring Signature, Bulletproof Upgrade Terra"s Algorithmic Dollar-Pegged Crypto UST Is Now the Third-Largest Stablecoin

News Feed

Marcel Pechman4 hours agoBitcoin price holds $26K as derivatives data hints at end of volatility spikeBTC futures and options data show pro traders’ sentiment was not impacted despite last week’s 11.4% correction.384
Nansen partners with Aptos for dashboard after chain users 2x in 6 months
Zoltan Vardai9 hours agoNansen partners with Aptos for dashboard after chain users 2x in 6 monthsAptos is among the firms aiming to ease Web3 onboarding, along with industry giants like Coinbase and MetaMask.652 Total vi
Robinhood Raises Almost $2 Billion in IPO, Falls Short of Expected $35 Billion Valuation
Robinhood Raises Almost $2 Billion in IPO, Falls Short of Expected $35 Billion Valuation Robinhood, the fee-free cryptocurrency, stock, and options exchange, rai
Cardano Price Woes To Continue? Analyst Expects ADA To Fall To $0.47
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Bitcoin pre-halving correction narrative strengthens as BTC falls below $62K
Martin Young4 hours agoBitcoin pre-halving correction narrative strengthens as BTC falls below $62K“Everyone who wanted to buy into the halving mostly has,” said Capriole Fund founder Charles Edwards.7890 Total views
Savannah Fortis15 minutes agoOpenAI creates a new team to tackle ‘superintelligent’ AI systemsOpenAI says it"s planning to create a team to help manage the risks that could come from a superintelligent AI system that
Founder of the Bitcoin Mixer Helix Pleads Guilty to Money Laundering Charges
Founder of the Bitcoin Mixer Helix Pleads Guilty to Money Laundering Charges Larry Dean Harmon, founder and operator of the bitcoin mixing service Helix has plea
SHIB Token Sees Rise Ahead of Shibarium Beta Launch
SHIB Token Sees Rise Ahead of Shibarium Beta Launch The meme token shiba inu has seen a rise against the U.S. dollar during the last seven days as the coin’s supporters antic
Key takeaways from the Golden Boys’ attack on Compound DAO
Agnes Gambill6 hours agoKey takeaways from the Golden Boys’ attack on Compound DAOA group of Compound DAO members called the "Golden Boys" won a narrow vote to manage 5 percent of the DAO treasury on members
Hashing It Out: Can blockchain create a sovereign internet?
Elisha Owusu Akyaw11 hours agoHashing It Out: Can blockchain create a sovereign internet?In the latest episode of Cointelegraph’s Hashing It Out podcast, the co-founder of XYO Network, Arie Trouw, explains how blockcha
Bill Miller’s Hedge Fund Sees Bitcoin Having ‘Significant Upside Potential’ as Digital Gold
Bill Miller"s Hedge Fund Sees Bitcoin Having "Significant Upside Potential" as Digital Gold In a report filed with the U.S. Securities and Exchange Commission (SEC), the fund manag
John McAfee Launches Ghost Phone Service to Supplement His Cryptocurrency
John McAfee Launches Ghost Phone Service to Supplement His CryptocurrencyTwo-time U.S. presidential candidate John McAfee has launched a privacy-centric cell phone data service. McA