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US economy headed for recession, but only a mild one

The US economy will experience a recession this year as the Fed remains resolute in its mission to halt inflation. But Goldman and Morgan Stanley disagree.

Cecile Lefort
Cecile LefortMarkets reporter

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The US economy will tip into a “mild” recession this year as the Federal Reserve remains committed to defeating inflation by raising interest rates further, dashing hopes for global growth in 2023.

Fed chairman Jerome Powell has said the world’s largest economy can maintain “modest” growth and just a small increase in unemployment. But The Australian Financial Review’s survey of 32 economists disputes this, saying US growth will stall early.

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Cecile Lefort is a markets reporter based in the Sydney newsroom. Email Cecile at cecile.lefort@afr.com

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    Original URL: https://www.afr.com/markets/debt-markets/us-economy-headed-for-recession-but-only-a-mild-one-20221227-p5c907