Roger Ferguson, former Federal Reserve vice chairman, joins CNBC’s Andrew Ross Sorkin at the Aspen Ideas Festival to discuss the Fed’s inflation hike, whether more rate hikes are in store, the cause of inflation, and more. For access to live and exclusive video from CNBC subscribe to CNBC PRO:
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BREAKING: Recession News
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Recession in Early 2024 is ‘A Reasonable Possibility’, Says Roger Ferguson
As the global economy slowly recovers from the devastating effects of the COVID-19 pandemic, there is increasing concern about the possibility of a looming recession in early 2024. Roger Ferguson, the former Vice Chairman of the U.S. Federal Reserve, recently stated that a recession during this time period is ‘a reasonable possibility’. His commentary has sparked a debate among economists and policymakers, as they assess the factors that could contribute to this potential economic downturn.
Ferguson’s observation is rooted in several key factors. Firstly, the pandemic’s ongoing impact continues to be a major concern. While vaccinations have been successful in curbing the spread of the virus, new variants and potential vaccine resistance pose a significant risk to global health and economic stability. With the possibility of future lockdowns and restrictions, the recovery trajectory could be disrupted, leading to reduced consumer and investor confidence.
Secondly, inflation has been on the rise in recent months. As economies gradually reopen, demand for goods and services has surged. This surge, coupled with supply chain disruptions, has resulted in increased prices for essential commodities. If this trend continues, it could undermine the purchasing power of consumers and negatively impact economic growth.
Thirdly, global geopolitical tensions and trade conflicts also pose a threat. The strained relations between major economies, such as the United States and China, have led to the imposition of tariffs and trade barriers. These protectionist measures restrict international trade, disrupt supply chains, and dampen overall economic activity. As these tensions persist, they could contribute to a potential downturn.
Fourthly, the impact of fiscal and monetary stimulus measures implemented in response to the pandemic may also play a role. Quantitative easing and government stimulus packages have helped to stabilize economies, but they have also increased government debt and expanded money supply. If these measures are not carefully managed and coordinated, they could result in inflationary pressures and destabilize financial markets.
Lastly, the uneven global recovery adds to the likelihood of a recession. While some countries are experiencing strong and rapid rebounds, others are struggling to contain the virus and revive their economies. The interconnectedness of the global market means that a downturn in one region can quickly spread to others, leading to an overall decline in economic activity.
However, it is important to acknowledge that the possibility of a recession in early 2024 is not set in stone. The trajectory of the global economy is influenced by various factors, many of which are still uncertain at this stage. The success of vaccination campaigns, the ability to manage new variants, the implementation of appropriate policy measures, and international collaboration all play a crucial role in shaping the future economic landscape.
As policymakers and central banks continue to monitor these factors and adjust their strategies accordingly, the goal should be to mitigate the risks and ensure a sustainable recovery. Proactive measures, such as investing in infrastructure, fostering innovation, and promoting job creation, will be vital to help bolster economic growth and strengthen resilience.
In conclusion, while the possibility of a recession in early 2024 is a valid concern raised by Roger Ferguson, it is crucial to approach this prediction with cautious optimism. By closely monitoring the evolving situation, governments and policymakers can take appropriate actions to mitigate risks, support recovery, and steer the global economy towards a more stable and prosperous future.
Am not gonna believe these medias anymore
I'm celebrating a $30k stock portfolio today. I started this journey with 6k. have invested on time and also with the right terms now I have time for my family and the life ahead of me.
This country is 30 trillion in debt and rising…..We will always be expecting a recession.
I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for….
24-26
recession is coming 2024
I just need a job before my severance money runs out!
would you consider doing a video with ideas of financial options I can explore as the economy is heading towards severe recession. I am under pressure to grow my reserve of $120k.
Always interrupting..
Shortest answer: YES! Why? INTEREST RATES. I talk about this every week.
It was certain that a recession was coming in 2023…
now it is certain that it is coming in 2024…
and next year, it is going to be certain it is going to be in 2025…
My prediction is student loans will trigger the reccession, and will see how it plays out out from there.
Omg, let it go. The news coverage on the upcoming recession has been nonstop for years now. Find some new doom scrolling content. At this point no one cares even if it does happen.
We have been seeing the recession headlines for 3+ years. Kicking the can down the road, blah, blah, blah
Msm- leading society downhill since its inception
When the economy started to tank, I lost more than $40,000. Not because I was involved in a heated exchange. Because that's what everyone else said, I was just dumb to hold, and that's why. Even while I still have responsibility for my decisions, I now consider myself to be a better investor because I am more aware of the potential pitfalls. I was in the market for more than 3 years before I realized that. I'm happy to have discovered a way to get my money back at approximately $5,000 per week in profits. Many thanks, Mrs Judith M Layton.
The greater the passive income you can build, the freer you will become. Taking the first step is the hardest, but 5 houses later living off passive income since July 6, 2016. You’ve got to start taking steps to achieve your goal.
i swear the fed minutes are happening like 3 times a month now
We are already in a recession…. Why are you discussing if recession will be here in 2024? Crazy people!
Rather than attempting to predict future recessions and risking financial losses, a more effective strategy is to build a well-diversified portfolio that can withstand various market conditions. This approach has allowed some individuals to consistently generate substantial returns, averaging around 150K every quarter as reported by Bloomberg.
Here we go. They ve been predicting recession since 2016 and nothing happened lol
Recession and Inflation have more immediate effects on people's level of living than a crash in the stock or real estate markets. It should come as no surprise that the market is currently so pessimistic. We must receive help immediately if we are to survive in this economy. Like the housing market, the ETF and stock markets continue to be highly volatile. My $370K portfolio is now nothing but ruins.
Recession fears mount on Wall Street and inflation remains well above the Fed's 2% target, some of the top commentators in markets, business, and economics have been sounding off on just how bad they think the next downturn might be — and how far stocks may have to fall. I need ideas and advice on what investments to make to set myself up for retirement, my goal is to have a portfolio of at least $850k at the age of 60.
It’s likely we went into recession late last year. We’ll see the worst of it in 2024.
Not even Roger Ferguson can time a recession. In 3 months he will revise it