According to ChainCatcher, Adam Posen, who previously worked at the Federal Reserve and the Bank of England, stated in a speech this week, "We may or may not fall into a recession, but we will face inflation either way." Currently serving as the director of the Peterson International Economic Research Institute, Posen, who holds significant influence, believes the likelihood of a recession is 65%.
Regarding the Federal Reserve, Posen believes that considering the still high inflation rate, it has already over-reduced interest rates. Once prices start rising again, the Federal Reserve may not keep up with the changing pace. As a result, the Federal Reserve might be forced to quickly and significantly raise interest rates, putting additional pressure on the economy.
If all of this becomes a reality, Posen says repairing these damages could take years or longer.
