As the BRICS bloc has continued to embrace de-dollarization, one major bank has predicted a “hard landing recession” for the US. Specifically, Morgan Stanley has forecasted a tragic end for the United States following the Federal Reserve’s long-standing fight against inflation.
The bank’s chief economist, Ellen Zentner, predicted that such a recession is “guaranteed” for the US when speaking to CNBC. Moreover, Zentner said that the full effects of the Fed’s tightening campaign won’t be felt until 18 months after the final interest rate hike.
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Morgan Stanely Expects Recession in 18 Months for US
Throughout the last year, the BRICS alliance has enjoyed tremendous growth. Not just in its expansion efforts, but in its widened de-dollarization campaign that has gained significant global traction. Now, those efforts could have a massive impact on America amid a greater macroeconomic concern.
Alongside BRICS actions against the greenback, one major US bank has predicted a hard-landing recession for the US in the next 18 months. Specifically, Morgan Stanley’s chief economist notes that the ongoing inflation fight is the key catalyst. Yet, a weakened US Dollar certainly doesn’t help matters. Subsequently, these have combined in what will set the stage for a tragic year to come for the country.
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“We will have a hard landing at some point,” Zentner said. “I guarantee you that. We’re all wondering: When does that come? The point that [JPMorgan CEO Jamie Dimon] makes is this that there are these cumulative impacts that build over time and we are in the camp that we haven’t yet seen all of the tightening impacts from monetary policy.”
The US dollar has performed poorly in recent weeks and has active opposition in the BRICS currencies. The economic alliance is working together to lessen international reliance on the greenback. Despite its affirmed status as a global reserve currency, there is no denying that the BRICS Actions have worked to this point.
For the US market, all eyes are on impending interest rate cuts. The Federal Reserve has embraced a wait-and-see approach to the cuts. Although some were expected in March, positive US economy data has changed that. Indeed, officials assured they will not be set to arrive until the summer months of 2024.