Key Points
- Of the 23 major financial institutions that work directly with the Federal Reserve, 16 anticipate a recession within the next 12 months, with two anticipating one the year after, according to a survey published by The Wall Street Journal Monday.
- The Fed hiked interest rates after several administration officials infamously described spiking inflation at the end of 2021 as “transitory,” shattering expectations of a relatively uneventful economic year in 2022, the WSJ reported. Economists polled by the WSJ expect that the unemployment rate — which has remained low at 3.7% despite high rates — will jump past 5% in 2023, potentially costing millions of jobs.
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