TechFlow, April 18 — According to Jinshi Data, Adam Posen, who previously served at the Federal Reserve and the Bank of England, said in a speech this week, "We may fall into recession, or we may not, but either way, we will face inflation." Posen, currently director of the Peterson Institute for International Economics and a highly influential figure, assessed the likelihood of a recession at 65%.
Regarding the Federal Reserve, Posen believes it has cut interest rates too much given the still-high level of inflation. Once prices start rising again, the Fed could fall behind the curve. As a result, it might be forced to sharply raise interest rates rapidly, placing additional stress on the economy.
If all this comes to pass, Posen said, repairing the damage could take years or even longer.
