Economist Nouriel Roubini has warned that there are currently only two paths for America’s economy—either uncontrolled inflation or a long and harsh recession—with his base case being a long and painful economic downturn rather than a short and shallow contraction.
Roubini, who got the nickname “Dr. Doom” after predicting the market crash in 2008, told Bloomberg in an Aug. 15 interview that if historical precedent is a guide, then key economic indicators point to continued aggressive monetary tightening by the Federal Reserve—and a harsh recession.
“In the United States, whenever you had inflation above 5 percent and unemployment below 5 percent, the Fed tightening has led to a hard landing,” Roubini said….