Strategist Invesco warns Fed is ‘playing a dangerous game’ that could lead to ‘significant recession’

The director of global market strategy at Invesco, a global investment firm with $1.3 trillion under management, has warned that the Federal Reserve is playing “a dangerous game” with interest rate hike by 75 basis points. She noted that the Fed’s actions could lead to “a substantial recession.”

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

Invesco’s director of global market strategy, Kristina Hooper, shared her thoughts on the US economy on Bloomberg’s What Goes Up podcast last week. Invesco is a global independent investment management company with over $1.3 trillion in assets under management (AUM) as of September 30. The company employs more than 8,400 people in more than 26 countries family.

Hooper, who has 21 years of experience in the investment industry, explains that the growing stock market is highly volatile as the Federal Reserve continues to fight inflation. She noted that the central bank has indicated it won’t let it happen until inflation is under control, even if it means hard work for the economy. She added that the Fed could raise interest rates by 75 basis points at the upcoming Federal Open Market Committee (FOMC) meeting in November and similarly in December.

Invesco’s global head of market strategy warns: “75 is the new 25… When you’re raising interest rates in 75 basis points and you’re not taking any time for it to process and drill down. into the data, you’re playing a dangerous game. She concluded:

The more you do that, the more likely you are to get into a recession – and a significant recession.

Many have warned of a recession. A recent survey found that 98% of executives are preparing for a US recession while 99% are preparing for a recession in the EU.

Tesla CEO Elon Musk last week said the recession could last until spring 2024. Goldman’s CEO David Solomon sees a good chance of a recession, advising investors to be cautious important. JPMorgan Chase CEO Jamie Dimon said the recession could hit the US economy for six months.

Renowned investor Jim Rogers has warned that the recession will be the worst of his life. Gold bug and economist Peter Schiff also believes that the Federal Reserve’s actions could lead to a severe recession along with a market crash and a major financial crisis.

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