Living Beyond Borders Podcast
May 19, 2022
2 mins

Will there be a recession?

May 19, 2022
2 mins
Citi Private Bank & GZERO Media
SUMMARY

The latest episode of Living Beyond Borders looks at the direction of US monetary policy in the face of rising inflation and the impact of rising interest rates on markets and consumer sentiment.


There have been unexpected surprises in 2022 with the resurgence of COVID in Asia and the war in Ukraine. Meanwhile, a hawkish US Federal Reserve appears to be focused on bringing inflation down and is attempting to do so through both its tools of interest rate hikes and quantitative tightening.

This is proving to be a setback for a wider economic recovery as inflation continues to spike. Given such a backdrop, a recession may yet hit this year or the next with the Fed seemingly willing to endorse market expectations of a record monetary policy tightening in a year's time.

Should inflation remain stubbornly elevated due to a continuation of supply-chain disruptions or new exogenous supply shocks in key goods due to geopolitical events, it is very possible that the Fed will determine that it has no choice but to continue to act even more hawkish. Rising rates, in turn, will have powerful effects on households, markets and economies. Where we go from here may be critical for the direction of the global economy for the next two years.

The latest episode of Living Beyond Borders, a special podcast series from GZERO brought to you by Citi Private Bank, explores what the Fed may do next, where interest rates are now, and where they may be heading. Moderated by Lucy Eve, Senior Strategist of Geoeconomics at Eurasia Group, this episode features Steven Wieting, Chief Investment Strategist and Chief Economist at Citi Global Wealth Investments and Robert Kahn, Director of Geoeconomics at Eurasia Group.

LIVING BEYOND BORDERS

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This podcast series, produced in partnership with GZERO Media, examines how our lives are impacted as the world changes. The podcasts are available on all popular platforms by searching “GZERO World” or via GZERO’s website.

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