The warning comes from well-known economist Nouriel Roubini as the Fed tries to stop inflation from rising.
As the United States government works to combat an inflation rate that is at its highest level in almost four decades, a prominent economist named Nouriel Roubini has warned of an imminent severe economic downturn.
According to a statement that Roubini gave to Bloomberg on Monday, “I think there are numerous reasons why we are going to have a terrible recession as well as a serious debt and financial crisis.”
Roubini noted that the economy of the United States is currently experiencing a phase of stagflation, which is characterised by poor growth and high inflation, and that debt ratios are “historically high.” He also suggested that the same is true for other wealthy nations across the world.
He continued by saying, “The notion that this is going to be brief and superficial is completely unrealistic.”
Wall Street gave Roubini the nickname “Doctor Doom” for correctly anticipating the global financial crisis that occurred between 2008 and 2009. Roubini is currently a professor at New York University and the chief executive officer of Roubini Macro Associates.
As the Federal Reserve has been attempting to rein in surging inflation by boosting its benchmark interest rate, the topic of whether or not the United States economy would enter a recession this year has been the subject of much discussion among economists.
Inflation in the United States reached 9.1 percent in June, marking the highest pace in more than four decades.
Earlier, the Secretary of the United States Treasury, Janet Yellen, refuted claims that the United States economy was in a recession by stating that the country was instead experiencing a “necessary and reasonable” slowdown.
