The odds are high that the United States economy will sink into a recession sometime within in the next year, according to a former chief economist for the International Monetary Fund.
“A recession at the end of the year or early next year is a better even money,” said Maurice Obstfeld, a professor of economist at University of California Berkeley and a former chief economist at the International Monetary Fund, in an interview with MarketWatch on the sidelines of the Federal Reserve’s summer retreat in Jackson Hole.
On Friday, Fed Chairman Jerome Powell said the U.S. would likely experience below-trend growth as the central bank raises its benchmark interest rate to try to bring inflation down, but avoided using the word recession.
See: Fed’s Powell says bringing down inflation will cause pain to households and businesses in Jackson Hole speech
Powell started making the case that…
