Fed sees elevated risk of recession over next four quarters – WSJ

Eren Sengezer FXStreet

Citing a new research paper that includes various models analyzed by a senior Federal Reserve economist, the Wall Street Journal reported that the Fed was seeing a slightly higher than 50% chance of a recession over the next four quarters.

Escalating imbalances in markets for goods and services, as well as the labour market, are cited as primary reasons behind the worsening outlook.

Market reaction

The US Dollar Index showed no immediate reaction to this headline and was last seen posting small daily gains at 104.55.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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