the recession will be long and deep

A recession in the United States will be “long” and “deep” and could lead to financial distress “at all levels”, said Nouriel Roubini, an economist famous for his bearish tendencies, quoted by Bloomberg on Monday.

“We are experiencing a sharp slowdown. We had two quarters of negative growth in the first half (of 2022)”, noted Mr. Roubini, an American expert of Iranian origin who was able to predict the explosion of the real estate bubble of 2008.

Customers shop at a supermarket in Millbrae, California, the United States, Aug. 10, 2022. (Xinhua/Li Jianguo)

The Federal Reserve raised its interest rates by an additional 75 basis points at the end of July in order to avoid an inflation rate of 8.5%, a step already adopted in June, which marks the successive increases the more important for decades.

Mr. Roubini explained that while inflation may have peaked, he is not sure how fast it will come down.

“I don’t think monetary policy is tight enough to push inflation back to 2% fast enough,” he concluded.

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