Invesco Strategist Warns the Fed Is ‘Playing a Dangerous Game’ That Could Lead to ‘Significant Recession’

The chief universal market strategist at Invesco, a global investment firm with $1.3 trillion under management, has warned that the Federal Hold back is playing “a dangerous game” with its 75-basis-point rate hikes. She noted that the Fed’s action could lead to “a noteworthy recession.”

Invesco’s Chief Strategist on Recession and the Fed’s Efforts to Fight Inflation

Invesco’s chief global market strategist, Kristina Hooper, share out her thoughts about the U.S. economy on Bloomberg’s What Goes Up podcast last week. Invesco is a global independent investment handling firm with over $1.3 trillion in assets under management (AUM) as of Sept. 30. The firm employs varied than 8,400 people in over 26 countries.

Hooper, who has 21 years of investment industry experience, described that the stock market has been growing very volatile as the Federal Reserve continues its efforts to fight inflation. She illustrious that the central bank has indicated that it will not let up until inflation is under control, even if it means encumber for the economy. She added that the Fed may raise interest rates by another 75 basis points at the upcoming Federal Bring to light Market Committee (FOMC) meeting in November, and the same again in December.

The Invesco chief global market strategist cautioned: “75 is the new 25 … When you are draw together rates in 75-basis-point increments and you’re not giving any time for it to process through and make its way through into the data, you’re playing a harmful game.” She concluded:

The more you’re doing it, the more likelihood you create of having a recession — and a significant recession.

Many people suffer with warned about a recession. A recent survey shows that 98% of chief executives are preparing for a U.S. recession while 99% are adapting for a recession in the EU.

Tesla CEO Elon Musk said last week that the recession could last until the springiness of 2024. Goldman CEO David Solomon sees a good chance of a recession, advising investors to be cautious. JPMorgan Pursue CEO Jamie Dimon said a recession could hit the U.S. economy in six months.

Renowned investor Jim Rogers has warned that the set-back will be the worst in his lifetime. Gold bug and economist Peter Schiff also believes that the Federal Reserve’s conduct could lead to a severe recession in addition to market crashes and a massive financial crisis.

What do you think about the comments by the Invesco strategist adjacent to the recession and the Federal Reserve’s action? Let us know in the comments section below.

Kevin Helms

A student of Austrian Economics, Kevin ground Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network functions and the intersection between economics and cryptography.