Goldman Sachs economists have predicted that the U.S. is more likely to enter recession territory in the next year.
The financial firm forecasts that there is a 30% chance of an incoming recession, which is up 15% and comes just after the Federal Reserve enacted its largest rate hike since 1994 to alleviate the pressures of inflation.
“We are increasingly concerned that the Fed leadership has set a high and inflation-specific bar for slowing the pace of tightening,” said Goldman Sachs.
Morgan Stanley offered a similar prediction, with economists at the firm forecasting a 35% chance for a recession to happen in the next year.
On the other hand, UBS does not expect a recession to happen either in the US or worldwide in 2022 or 2023. However, if it does occur, the organization said it would be shallow.