Soft landing or recession? my prediction

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1 min read

Facts & Analysis

  • Recession usually appears ~8 months after peak FED rates

  • Inflation is still higher than ideal (2%)

  • FED rates seem to be peaking already, with maybe 1-2 last hikes

My prediction

  • 1 more rate hike for 2023 in September (peak)

  • Soft recession by May 2024 (US, other countries might lag 3-6 months behind)

  • Business as usual by Jan 2025 (US, other countries might lag 3-6 months behind)

Update 1 (April 10 2024)

https://www.barrons.com/livecoverage/inflation-march-cpi-data-report-today

Image

Ref:

https://fred.stlouisfed.org/series/FEDFUNDS

https://www.forbes.com/sites/dereksaul/2023/08/16/more-interest-rate-hikes-may-still-be-on-deck-federal-reserve-warns/?sh=3aea1b644847

https://manifold.markets/Cactus/recession-in-2024

https://www.franklintempleton.com/insights/anatomy-of-a-recession