BRITISH financial services company HSBC said in its projection that the US could enter a major recession in the fourth quarter of this year, followed by Western European countries next year.
According to the banking giant, recession cautions are ‘flashing red’ for many economies.
The HSBC management pointed out that stock and bond markets are ‘out of sync’ with fiscal and monetary policies.
In a statement, HSBC global chief strategist joseph little said,
“Our central scenario is for a recession in western economies, and a difficult, choppy outlook for markets,” Joseph Little, HSBC global chief strategist said.
It can be noted that the announcement comes a week after the Bank of England moved to lift rates to 5 percent.
In May, the US Federal Reserve announced an increase in its key interest rate to 5.25 percent with the European Central Bank also raising the Eurozone’s key rate to 3.75 percent.
