Could it be a *hushed tone*... recession?

The International Monetary Fund lowered its 2022 global economic forecast for the third time this year in a new quarterly report published yesterday, saying “the outlook has darkened significantly since April.”

🤔📉 What’re they talking about?.. A familiar tale of woe: high levels of global inflation, causing central banks around the world to hike interest rates and slow their respective countries’ rates of economic growth. Plus, China’s lingering “zero-Covid” policy is still impacting global supply chains – as is the ongoing war in Ukraine.

• All of this👆 means the IMF now expects the world economy to grow by 3.2% this year, down from 6.1% in 2021.
• Next year is thought to be even worse: 2.9%, only slightly above the 2.5% growth level the IMF typically considers to be a global recession.

👀 Looking ahead… The US Bureau of Economic Analysis is scheduled to report Q2 GDP numbers tomorrow morning. If they’re negative, it would mean the American economy has officially entered into a recession, aka two consecutive quarters of GDP decline.

+Speaking of rate hikes: The Fed is expected to raise interest rates by 0.75% following the conclusion of its two-day policy meeting later today.