A company called MPS Capital Services said that our country’s economy could slip into a recession by the end of this year. The strategist at this company also predicted that the Federal Reserve (which is like our country’s bank) will raise interest rates by 25 points. He said that this might make it harder for the economy to do well because it will be more expensive to borrow money.
An Economic Recession is Inevitable
Luca Mannucci from MPS Capital Services, an Italian bank, has said that the United States could have an economic recession soon and its currency – the dollar – may drop down by up to 5% against other types of money before the year ends. This information was reported by Bloomberg news!
By the end of the year, it is predicted that the U.S. economy will start to slow down because of changes in monetary policy. Mannucci believes that American’s interest rates will go up by 25 points and Europe’s Central Bank is likely to increase their interest rate by two quarters.
An expert believes the value of the American dollar will go down at least 3% against the euro in the near future. This is because of decisions made by the Federal Reserve about raising interest rates, which has caused the Bloomberg Dollar Spot Index to fall 1.6% this year and 10% since last September’s peak.
An expert in dealing with money said that if some American banks have trouble and Credit Suisse has problems too, it will become harder to get loans and this could damage our economy.
Some very important people have predicted that the U.S. is going to enter a recession, which basically means an economic decline. The president of the Federal Reserve Bank says we’re getting closer to it and economists like David Rosenberg have warned of a “crash landing”. Peter Schiff believes there will be a worse financial crisis than what the Fed knows about and Jeffrey Gundlach thinks it’s going to be painful.
What do you think about the guesses made by the MPS advisor? Let us know in the comments box below!