Brace for a recession in 2023 as job losses top 2 million, Citi says

The U.S. will likely tumble into a “mild” recession next year that sees unemployment top 5%, according to a new report from Citi Global Wealth Investments.

The group said in its latest outlook report published this week that the economy could lose an estimated 2 million jobs in 2023 as the jobless rate climbs to 5.25%.

“We believe that the Fed’s rate hikes and shrinking bond portfolio have been stringent enough to cause an economic contraction within 2023,” the economists said in the report. “And if the Fed does not pause rate hikes until it sees the contraction, a deeper recession may ensue.”

The Federal Reserve has been raising interest rates at the most aggressive pace since the 1980s in a bid to fight inflation. Policymakers have already approved six straight rate hikes, putting the federal funds rate into a range of 3.75% to 4% from near zero in March.
Although officials are expected to approve a slightly smaller, 50-basis-point increase at their December meeting, they have also signaled an appetite for a higher peak interest rate.

About the Author: Patriotman

Patriotman currently ekes out a survivalist lifestyle in a suburban northeastern state as best as he can. He has varied experience in political science, public policy, biological sciences, and higher education. Proudly Catholic and an Eagle Scout, he has no military experience and thus offers a relatable perspective for the average suburban prepper who is preparing for troubled times on the horizon with less than ideal teams and in less than ideal locations. Brushbeater Store Page: http://bit.ly/BrushbeaterStore