Schroders: 'Inflation will come under control, but the price is likely to be a recession'

Schroders' three drivers of a US recession

Eve Maddock-Jones
clock • 4 min read

The anticipated rate hike from the Federal Reserve has done little to dispel investors anxieties about a recession, which Schroders' chief economist and strategist, Keith Wade, said is a very real possibility.

Economists are forecasting an interest rate hike of 0.5 percentage points, which will be the first half-point interest rate rise since 2000, alongside a start of its quantitative easing campaign in a bid to tackle inflation. The rate of inflation has hit 8.5% in the US having steadily climbed since September last year. US economy unexpectedly shrinks 1.4% in first quarter of 2022 The Fed's chairman, Jerome Powell, will also be making an accompanying statement, which Wade said investors would be watching closely. He said one of the signs investors will be looking out for is reces...

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