A prominent U.S. bank has issued a stark warning that there’s a 93% chance of a recession occurring later this year. This projection has sent ripple effects through markets, stirring concerns among investors and policymakers about what steps to take to weather the downturn.
Key factors fuelling this warning include slowing consumer spending, weakening labor market indicators, inflation that remains sticky, and tightening credit conditions. The combination of these signals suggests that economic growth may decelerate sharply unless corrective action is taken.
In response, businesses are being advised to review their exposure, manage costs tightly, and build stronger cash reserves. For individuals, experts recommend caution when borrowing and encourage saving in anticipation of possible job market turbulence.
