IMF: Interest rate increases could spur a harsh global recession and "the worst is yet to come"

[honest.abe]

The International Monetary Fund said on Tuesday that the world economy was headed for “stormy waters” as it downgraded its global growth projections for next year and warned of a harsh worldwide recession if policymakers mishandled the fight against inflation.

The grim assessment was detailed in the fund’s closely watched World Economic Outlook report, which was published as the world’s top economic officials traveled to Washington for the annual meetings of the World Bank and the I.M.F.

The gathering arrives at a fraught time, as persistent supply chain disruptions and Russia’s war in Ukraine have led to a surge in energy and food prices over the last year, forcing central bankers to raise interest rates sharply to cool off their economies. Raising borrowing costs will probably tame inflation by slowing business investment and consumer spending, but higher rates could also yield a new set of problems: a cascade of recessions in rich nations and debt crises in poor ones.

There are growing fears among policymakers that a so-called soft landing will elude the global economy. “In short, the worst is yet to come, and for many people 2023 will feel like a recession,” the International Monetary Fund report said.

https://www.nytimes.com/2022/10/11/business/imf-world-economy-forecast.html

Perhaps I am completely clueless regarding global economics but I think I would rather deal with high priced eggs and potatoes than a harsh worldwide recession.

[TheRealNorth]

1. The rich will be able to make their money on the interest rates....

That's all that matters to the Fed.

I look forward to the wealthy buying more houses for cheap and renting them back to us Plebs.

[honest.abe]

2. No doubt us Plebs trying to buy a house now are screwed.

All cash will be the norm for most purchases. Its sickening.