Invesco Strategist Warns The Fed Is “Playing A Dangerous Game” That Could Lead To A “Significant Recession” CryptoGlobe

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The chief global market strategist at Invesco, a global investment firm with $1.3 trillion under management, warned that the Federal Reserve is playing “a dangerous game” with its 75 basis point rate hikes. She noted that the Fed’s action could lead to “a significant recession.”

Invesco chief strategist on the recession and the Fed’s efforts to fight inflation

Invesco’s chief global markets strategist Kristina Hooper shared her thoughts on the US economy on Bloomberg’s What Goes Up podcast last week. Invesco is an independent global investment management firm with more than $1.3 trillion in assets under management (AUM) as of September 30. The company employs over 8,400 people in more than 26 countries.

Hooper, who has 21 years of experience in the investment industry, explained that the stock market has become very volatile as the Federal Reserve continues its efforts to fight inflation. She noted that the central bank has indicated it will not ease until inflation is brought under control, even if that means trouble for the economy. She added that the Fed could raise interest rates another 75 basis points at the next Federal Open Market Committee (FOMC) meeting in November, and again in December.

Invesco’s chief global market strategist warned: “75 is the new 25… When you raise rates in 75 basis point increments and you don’t give it time to process and ramp up path in the data, you are playing a dangerous game. She concluded:

The more you do this, the more likely you are to have a recession – and a major recession.

Many people have warned of a recession. A recent investigation shows that 98% of business leaders are preparing for a recession in the US while 99% are preparing for a recession in the EU.

Tesla CEO Elon Musk said last week that the recession could last until the spring of 2024. Goldman CEO david solomon sees a good chance of a recession, advising investors to be cautious. CEO of JPMorgan Chase Jamie Dimon said a recession could hit the US economy in six months.

Famous investor Jim Rogers warned that the recession would be the the worst of his life. Gold bug and economist Peter Schiff also believes that Federal Reserve action could lead to a severe recession in addition to stock market crashes and a massive financial crisis.

Keywords in this story

75 basis points, 75 basis points, Federal Reserve, Invesco, Invesco Kristina Hooper, Invesco Strategist, Kristina Hooper, Kristina Hooper Recession, Kristina Hooper American economy, rate hikes, American economy

What do you think of the Invesco strategist’s comments on the recession and Federal Reserve action? Let us know in the comments section below.

Kevin Helms

An economics student from Austria, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests include Bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.

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