The economy right now is the Fed’s ‘worst nightmare’ and there’s a 50% chance of a global recession, Citi economist says

MarketsInsider/Jennifer Sor/8-2-2022

photograph of mythcial loch ness monster

“It’s really hard for central banks to fight that. I’m cautious to use the word, but it feels at the moment that we’re going through a period … [of] transitory stagflation.” – Nathan Sheets, Citigroup

USAGOLD note: Transitory stagflation is as mythical a beast as transitory inflation. Sheets mentions that the current mix of signals is the Fed’s “worst nightmare” because it is facing both a recession and inflation. It can’t fight one without giving impetus to the other.

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