Federal Reserve Economists Still Expect a Recession Later This Year, FOMC Minutes Show
Federal Reserve economists still expect a recession starting later this year, according to minutes from the June Federal Open Market Committee (FOMC) policy meetings.
The economic forecast put together by staff at the policy meeting “continued to assume that the effects of the expected further tightening in bank credit conditions, amid already tight financial conditions” would trigger a “mild recession” later this year.” The tepid downturn would then be “followed by a moderately paced recovery.”
Minutes stated that the real GDP was predicted to decelerate in the second and third quarters “before declining modestly” in the fourth quarter and the first quarter of 2024….