'25% chance' of global recession: Harvard's Rogoff
01/17/2024 01:33
With the Federal Reserve keeping Interest rates higher for longer and ongoing, escalating geopolitical conflicts, questions around the potential for a global recession are arising. More than half of chief economists surveyed by the World Economic Forum say the global economy will slow down. Kenneth Rogoff, Maurits C. Boas Chair of International Economics at Harvard University, joins Yahoo Finance's Julie Hyman and Brian Sozzi to give insight into the potential for a global recession, what it could look like, and the impact it may have on broader markets. When asked about the potential of multiple interest rate cuts from the Fed, Rogoff affirms: "It sort of depends if you think we're going to have a recession or not. If you think we're going to have a recession, yes, but if we're just having a soft landing, absolutely not. I think in fact, I've been saying this to you for a while, the super low interest rates we saw particularly from 2012 through 2021, the real ten-year interest rate average is zero... Forget it. That's not coming back for a long time." It's all part of Yahoo Finance's exclusive coverage from the World Economic Forum in Davos, Switzerland, where our team will speak to top decision-makers as well as preeminent leaders in business, finance, and politics about the world’s most pressing issues and priorities for the coming year. Editor's note: This article was written by Nicholas Jacobino
With the Federal Reserve keeping Interest rates higher for longer and ongoing, escalating geopolitical conflicts, questions around the potential for a global recession are arising. More than half of chief economists surveyed by the World Economic Forum say the global economy will slow down.
Kenneth Rogoff, Maurits C. Boas Chair of International Economics at Harvard University, joins Yahoo Finance's Julie Hyman and Brian Sozzi to give insight into the potential for a global recession, what it could look like, and the impact it may have on broader markets.
When asked about the potential of multiple interest rate cuts from the Fed, Rogoff affirms: "It sort of depends if you think we're going to have a recession or not. If you think we're going to have a recession, yes, but if we're just having a soft landing, absolutely not. I think in fact, I've been saying this to you for a while, the super low interest rates we saw particularly from 2012 through 2021, the real ten-year interest rate average is zero... Forget it. That's not coming back for a long time."
It's all part of Yahoo Finance's exclusive coverage from the World Economic Forum in Davos, Switzerland, where our team will speak to top decision-makers as well as preeminent leaders in business, finance, and politics about the world’s most pressing issues and priorities for the coming year.
Editor's note: This article was written by Nicholas Jacobino