Fed Unlikely to Avoid Recession: Economists

By Jim Tyson, Senior Reporter | ConstructionDive.comDive Brief:

  • The Federal Reserve will probably fail to steer the economy away from a recession as it fights the worst inflation in four decades by aggressively withdrawing stimulus, according to 73% of economists surveyed this month by the National Association for Business Economics (NABE).
  • Nearly half of economists (47%) believe a downturn will begin by the first quarter of next year, while 19% believe the economy is already shrinking, the NABE found in a survey released Monday.
  • “Panelists are not confident that the Federal Reserve will be able to bring inflation down to its 2% goal within the next two years without triggering a recession,” NABE Policy Survey Chair Juhi Dhawan said in a statement.