News Analysis
Rapidly rising interest rates have economists, business leaders, and financial markets increasingly fearing a recession in the United States next year as stock markets plunge, while Canada’s economy is facing a similar dynamic but with greater vulnerability to its central bank, an economist says.
“There are many recessions in the past that were triggered or helped or caused by a monetary policy error in which central bankers raised interest rates too quickly,” Benjamin Tal, CIBC’s deputy chief economist, told The Epoch Times.
Concerns over global economic growth are surfacing amid elevated inflation and persistent supply-chain bottlenecks. Both the Bank of Canada and the U.S. Federal Reserve are bent on taming inflation by hiking interest rates to dampen demand. But the supply side has been additionally compromised by Russia’s invasion of Ukraine, whose effects are beyond central bankers’ control. …
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