The global economy will likely avoid a recession and central banks will need to "change the goalposts" on inflation, according to veteran strategist David Roche.
With high inflation proving sticky across many major economies, central banks have tightened monetary policy aggressively over the past 18 months.
Further hikes to interest rates are expected later this year amid tight labor markets and resilient economic activity.
"Will that produce deflation, will that produce recession?
The year-over-year inflation rate dropped from 4% in May to 3% in June, largely due to falling energy and transportation prices, while core inflation — which excludes volatile food and energy costs — slowed to increase by just 0.2% month-on-month.
Persons:
David Roche, It's, Roche
Organizations:
U.S . Federal
Locations:
Ukraine