Financier McDonald: US will not be able to avoid recession in the next 2 months
The risk of a recession in the US economy is inevitable, in the next two months we should expect a sharp decline in economic activity and GDP. About this forecast RIA News Lawrence McDonald, former vice president of Lehman Brothers financial corporation, said.
“The possibility of a recession now, in my opinion, is undeniable,” he said.
The financier pointed to the expected sharp decline in economic activity and GDP. During the financial crisis in 2008, the expert worked for Lehman Brothers and was responsible for debt management and convertible securities trading.
“In the next month or two, a sharp contraction in economic activity, GDP, jobs is typical – job cuts are likely to increase at a sharp pace,” McDonald said.
According to him, now there is a loss of confidence in the system on the part of investors, as they are experiencing losses due to US and European banks.
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The bankruptcy of the American bank Lehman Brothers in 2008 is considered to be the starting point of the global financial crisis.
On March 15, Mark Zandi, chief economist at Moody’s Analytics, assessed the impact of the recent banking collapse on the US economy. He said the US Federal Reserve is unlikely to raise interest rates at its next meeting on March 22 due to the sheer uncertainty following the recent bank failures. According to him, the latest data on the consumer price index on March 14 showed that inflation rose again in February, but was in line with expectations.
The expert’s comments came after the March 10 closure of Silicon Valley Bank (SVB), which was the largest banking collapse in the US since the 2008 financial crisis and the second largest ever. On March 12, politicians made an effort to support depositors at both SVB and Signature Bank (SNY), which was also closed.
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