A hard-landing recession is guaranteed as the full impact of Fed rate hikes have yet to hit the economy, Morgan Stanley’s chief economist says
Morgan Stanley’s chief economist, Seth Carpenter, cautioned that the full impact of the Federal Reserve’s aggressive rate-hike cycle is still to be felt, predicting an inevitable hard-landing recession. Despite recent signs of cooling inflation, Carpenter emphasized that the Fed’s efforts to tame price pressures will have a severe impact on economic growth. He anticipates a housing-market correction, rising unemployment, and a significant slowdown in corporate earnings. Carpenter’s dour outlook suggests that the economy is bracing for a severe downturn as the consequences of the Fed’s monetary tightening play out.
