Famous economist Nouriel Roubini raises caution as the Fed attempts to contain the inflationary trend.
To combat a four-decade-high inflation rate, famous economist Nouriel Roubini has warned of an oncoming devastating recession.
In an interview with Bloomberg on Monday, Roubini said, "I think there are many reasons why we are going to have a catastrophic recession and a severe debt and financial crisis.
Roubini stated that the US economy is experiencing stagflation (poor growth and high inflation), and that debt ratio are "historically high." He further suggested that the same is true for other wealthy countries around the world.
It is completely illogical to think that this will be brief and superficial, he continued.
Wall Street dubbed Roubini, a professor at New York University and the CEO of Roubini Macro Associates, "Doctor Doom" for correctly anticipating the financial crisis of 2008–2009.
The Federal Reserve has been raising its benchmark interest rate to contain the US economy's spiraling inflation, which has led many to question whether the US economy could experience a recession this year. The rate of US inflation in June was 9.1%, which was the highest level in more than 40 years.
Before this, US Treasury Secretary Janet Yellen refuted claims that the US economy was in a recession, instead stating that the US was experiencing a "necessary and reasonable" slowdown.