SPRINGFIELD, Mass. (WWLP) – There are new concerns about a possible recession as Inflation continues to be high.
Mark Teed, the Senior Vice President of Investments at Raymond James in Springfield, says that there’s more uncertainty than there ever has been, and the next two months are critical. Financial experts are not sure if the federal reserve is going to continue on this path.
Teed believes that the market is sending signals to Jerome Powell, the chair of the Federal Reserve, urging him not to raise rates as much. While other financial experts think its crucial to go after inflation even more by driving interest rates up. The theory is that recession will be killed at that point, but in the mean time, there could be job loss.
“No matter what happens this year, whether it’s a recession or inflation continues, as we look out further down the road it looks like interest rates are going to go back down to 2%. Inflation is going to go back down, so if you can just work through this time period everything will be back to normal later this year or early next year,” said Teed.
Teed continues by saying that in 2023, we want slow growth and we want inflation to come down. There’s a possibility that the federal reserve is going to continue to raise rates to slow the economy down so it grows negatively for a couple of quarters to vanquish inflation.