The economist warns of an impending economic recession
According to ChainCatcher, macroeconomic economist Henrik Zeberg criticized the Federal Reserve for neglecting significant economic patterns despite the presence of over 400 PhD economists. Zeberg argues that the United States is heading towards a major economic recession, which the Federal Reserve has failed to recognize despite its considerable resources.
Zeberg emphasizes the importance of understanding the correct sequence of events in the economic cycle to predict economic slowdowns. He believes that the current expectations of the Federal Reserve underestimate the severity and timing of the upcoming recession.
He points out that the unemployment rate is a reliable indicator that precedes every major economic recession. In November, the unemployment rate in the United States reached 4.6%, the highest in four years, approaching the recession threshold established by the Sahm rule, and increasing the probability of a recession to about 40%.
