5 Nouriel Roubini Predictions

1. U.S. Recession:  2022-to-Date 

In 2022, the U.S. Federal Reserve struggled with inflationary pressures that had gotten out of control. Massive stimulus packages in previous years and cutting interest rates to record lows had plunged the U.S. economy into a mountain of debt amid high inflation. The economic slowdown in the pandemic’s aftermath was also a concern.

In Mid-June of 2022, with Elon Musk and Goldman Sachs, Roubini warned that the U.S. economy was at risk of recession. The remarks came as the FED started hiking interest rates at the fastest pace in the race to bring inflation below the 2% threshold.

While Roubini expected the U.S. economy to plunge into a recession at the end of the year, it did not materialize. The remarks came as measures of consumer confidence, retail sale, and manufacturing activities slowed sharply. He had also warned that the stock market would crash by 40%  as it was in a bubble driven by excessive liquidity, low-interest rates, and irrational exuberance.

Fast forward, the economy is still holding steady even though there are concerns that it could plunge into recession should the FED persist on further interest rate hikes. Economic activities have also slowed down.

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