Economist Steve Hanke predicts a stock market retreat, a recession, and inflation dropping below 2% by the end of the year, citing pricey stock valuations that will likely decrease during a recession. Hanke, a former economic advisor to Ronald Reagan, attributes recent volatility to changes in the U.S. money supply.
He and colleague John Greenwood accurately predicted a peak in the consumer price index at 9.1% in 2022, forecasting a decline to 2-5% by December (and ending at 3.4%). Emphasizing inflation as a monetary phenomenon, they now predict it falling below the Federal Reserve’s 2% target by year-end.
Top economist Steve Hanke says stocks will drop, a recession will hit, and inflation will sink below 2% this year
January 18, 2024
Article from Business Insider by Theron Mohamed
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