New York CNN Business —Stubborn inflation and the Federal Reserve’s jumbo-sized interest rate hikes will drive the American economy into a 1990-style mild recession starting in the spring, Fitch Ratings warned on Tuesday. “The US recession we expect is quite mild,” economists at Fitch Ratings said. “US household finances are much stronger now than in 2008, the banking system is healthier and there is little evidence of overbuilding in the housing market,” Fitch Ratings economists wrote. By contrast, Fitch Ratings sees the unemployment rate rising from just 3.5% today to 5.2% in 2024. “Fitch Ratings expects a very strong consumer balance sheet and the strongest labor market in decades to cushion the impact of a likely recession,” the report said.

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