The Markets for this week Recession, Inflation, Interest rate

Finance and economics explained simply

Fears and signs of recession are circulating in the US, experts say a mild recession is coming the second half of 2023. Concerns for recession are raised due toon going rate hikes because of the the ongoing high inflation!

The next Federal Reserve policy meeting is scheduled to take place from Dec 31 to Feb 1, Dallas Federal Reserve Bank President Lorie Logan, suggested there could another rate hike! Philadelphia Federal Reserve President Patrick Harper restated for another 0.25 points increase, along with Dallas Federal President Lorie Logan saying we could and should, if necessary, adjust our policy!

Us Stocks experienced losses this week since fear of recession and interest rate hike lingers. For two consecutive days the US stock market had negative movement, fear of recession triggered a sell off followed by the US debt cap! The US Government reached their debt limit yesterday triggering further selling of the US markets! The secretary of the US Treasury Janet Yellen said that extraordinary measures will be taken to prevent The US from defaulting on its obligations

Inflation level in UK sits at 10.5%, Experts are expecting a rate hike! The next bank of England Monetary policy and Official bank rate vote is scheduled for Feb 2, 2023
Inflation slowed down in Canada, Yet Experts believe there will be another rate hike of 0.25 points by next week! Randal Bartlett, senior director of Canadian Economics at Desjardins said, even though Inflation showed signs of slowing down, based on the last data release, it is not sufficient to prevent a rate hike, For the bank of Canada to bring down inflation to 2% is ways ahead. He stated, he expects BOC will hike the interest rate next week, Wednesday 25 2023 from 4.25% to 4.5%.

ECB President Lagarde said on a press conference prior to ECB Monetary Policy Meeting on Wednesday 19 of Jan 2023 that:
Inflation is High and ECB is determined to bring it down to 2% in a timely manner.
Will stay Course with rate hikes, giving a hint of interest rate hike
She also said in an optimistic way that:
Job Market in Europe has never been as Vibrant as now!
2023 will not be brilliant but better than feared and the economic news have become more Positive
Overall Lagard admitted to high inflation and measures must be taken, yet appeared optimistic and believes the situation is manageable, adding that Europe will experience a short contraction, hinting that if Europe enters recession, it would be mild!

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