Agencies-Gaza post
“Doctor Doom” predicts a severe recession in the US
Renowned economist Nouriel Roubini issues the warning as the Fed tries to curb rising inflation
A prominent economist, Nouriel Roubini, has warned of a deep recession ahead as the US government tries to stem inflation that has been high for four decades.
“I think there are many reasons why we’re going to have a severe recession and a severe debt and financial crisis.” Roubini told Bloomberg on Monday.
The US economy is in a period of stagflation (low growth and high inflation), while debt ratios are “historically high”, Roubini explained and suggested that the same applies to other developed nations worldwide.
“The notion that this will be brief and superficial is completely delusional.” he added.
Roubini, a New York University professor and executive director of Roubini Macro Associates, was dubbed ‘Doctor Downfall’ from Wall Street for predicting the financial crisis of 2008-09.
Economists have debated whether the US economy will be hit by a recession this year as the Federal Reserve has sought to curb rising inflation by raising its benchmark interest rate. US inflation hit 9.1% in June, the highest rate in more than 40 years.
US Treasury Secretary Janet Yellen previously denied the American economy was in a recession, saying the nation was going through one instead “necessary and appropriate” slower.
