For months, former Fed Governor Roger Ferguson has worried the risks of a recession were rising. Now, he said, a recession in 2023 is nearly unavoidable, with the chances “definitely over 50%,”
What changed? In an interview Monday on CNBC, Ferguson said it was fresh signs of spreading global economic weakness, including in China.
“The rest of the world is also slowing pretty dramatically,” just when the Fed as other central banks are starting to raise interest rates to try to curb inflation.
“It’s a witches brew,” Ferguson said.