Fidelity International's Salman Ahmed is predicting a recession on the back of high interest rates, per Bloomberg.
AdvertisementAdvertisementThe increased cost of borrowing due to higher interest rates means companies may not be able to invest in growth.
Consumer spending also typically falls when interest rates rise.
By the end of 2008, its benchmark interest rate — the Fed Funds Rate was close to 0%.
The Fed has been hiking interest rates relentlessly since March 2022 to combat red-hot inflation as the pandemic receded.
Persons:
Salman Ahmed, Ahmed, Fidelity's Ahmed —, —, Ahmed isn't, David Rosenberg
Organizations:
Fidelity, Bloomberg, Service, Federal
Locations:
Wall, Silicon