Economists warn of impending recession
According to a number of sources reported in the Financial Times, U.S. economists are said to be predicting a recession for either later this year or early next year. Wall Street economist, Don Rissmiller is quoted as giving 50% odds on a 2023 slowdown, while Goldman Sachs pointed to a “20-35%” chance of an impending recession. Factors responsible for this include the recent 30% rise in oil prices due to the Russian invasion of Ukraine, while wheat and corn prices have also risen 17% and 10% respectively in the last three weeks. The FT said the fact “both consumers and market participants know there is a contracting economy only makes the contraction more likely.” It reports that while growth in payrolls and labor force participation have come with high nominal wage gains, firms could start to protect their margins by rising prices.