Fed forecasts ‘mild recession’ in 2023

Quick Take

  • The FOMC minutes were released Thursday, showing a split among members over further rate hikes.
  • However, it was clear that rate cuts will not be happening in the near future.
  • In the staff economic outlook, it was stated a “mild recession” could occur later this year.
  • Two years ago, the term “transitory inflation” was floated – later turning into persistent inflation. Concerns are that a “mild recession” may turn into a harsh recession.
  • President of the Minneapolis Fed, Neel Kashkari, suggests a 6% fed funds rate is possible – heightening uncertainty around the crypto outlook.

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