Financial Shock Expected In 2023
Here’s what will happen…
Standard Chartered has made a series of economic predictions which could all happen it 2023 and now economists are speculating what the outcomes would be if any of these things end up do happening.
According to Business Insider, some of the potential economic and financial surprises that could happen in 2023 are the Federal Reserve cutting interest rates by 200 basis points and oil prices dropping by more than 50%.
One of the bigger predictions Standard Chartered has made is the Fed cutting interest rates by 200 basis points. As you may already know, the US central bank increased their rates by 350 basis points in 2022, a drop of 200 points would be a big change for a number of Americans.
Chief strategist Eric Robertson explained, “In 2023, what started as a mild malaise quickly becomes an economic panic. Layoffs spread from the technology sector to housing and retail to industrials and financial services.”
Adding, “A pause quickly becomes a pivot, which then becomes a full-scale reversal by mid-year. The Federal Open Market Committee halts QT and cuts rates by 200 basis points before the end of 2023.”
Standard Chartered also predicted that the cost of a barrel of oil could also drop to $40 a barrel as demand slows down due to a recession.
