For much of this year, the Fed has held steadfast to its goal of a “soft landing” for inflation, the idea of vanquishing inflation without a dramatic economic downturn.
But despite several interest rate hikes, inflation is still running hot, and business leaders are saying that it’s not a matter of if a recession will happen, but when.
On Wednesday, after another rate hike, and a promise from Fed chairman Jerome Powell to stay the course until inflation comes down, Bridgewater founder Ray Dalio said that the Federal Reserve will probably keep tightening its monetary policy until high prices come down, no matter the consequences. As a result, a recession is likely within the next year.
“You’re starting to see all the classic early signs,” he said during an interview with MarketWatch editor-in-chief Mark DeCambre during the outlet’s inaugural Best New Ideas in Money festival. Those signs, he said, are contraction in the housing and auto sectors, which are the first to be…
This article was written by and originally published on finance.yahoo.com