Invesco's Chief Fixed-Income Strategist and Head of Macro Research, Rob Waldner, voiced concerns late on Wednesday about the potential for a recession. This sentiment stands in stark contrast to the earlier predictions made by Federal Reserve officials of a soft landing for the economy.
Waldner's apprehension comes in the wake of recent interest-rate hikes implemented by the Federal Reserve. These measures have started to manifest their effects, including a slowing down of economic growth and a decrease in inflation. The strategist suggests that these measures are not only slowing growth but also escalating the risk of a recession.
Waldner's concerns indicate that the impact of the interest-rate hikes may be more severe than anticipated, contradicting the Federal Reserve officials' forecast shared earlier in the day. Despite the officials' optimistic outlook for the economy, Waldner's warning underscores a growing unease about the potential for an impending recessionary environment.
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