The Big Take
US Faces a Fed-Triggered Recession That May Cost Biden a Second Term
Rate hikes to counter inflation lift risk of a downturn to 72% in Bloomberg Economics models — heralding trouble for the White House
Joe Biden and Jerome Powell. The Fed delivered its biggest interest-rate hike in almost three decades on June 15.
Credit: Bloomberg
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Soaring prices are hurting Americans. The cure is going to hurt, too. It may take a recession to stamp out inflation -- and it’s likely to happen on President Joe Biden’s watch.
A downturn by the start of 2024, barely even on the radar just a few months ago, is now close to a three-in-four probability, according to the latest estimates by Bloomberg Economics.