Andrew Balls from investment firm PIMCO has warned about the possibility of a recession in the United States, with Europe likely to face a similar situation.
The chance of America slipping into a recession over the next 12 months is “probably more likely than not,” the global chief investment officer for fixed income at PIMCO said while speaking at a webinar on June 30, according to Reuters. He put the recession probability close to 50 percent or slightly higher.
“A recession is not the only important thing. You’re clearly going to see a significant growth slowdown,” Balls said.
“The inflation profile in the short term is very important. Central banks are focused on inflation credibility.” He described the rate hikes by the U.S. Federal Reserve as “reasonable.”…