BMO Fixed Income Head Sees ‘99.9%’ Odds of Fed-Induced Recession

Photographer: Brent Lewin/Bloomberg
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It will be nearly impossible for the North American economy to avoid a recession because interest rates will have to rise much higher to quell inflation, according to the head of fixed income at Bank of Montreal’s fund management division.

“The likelihood of a recession is 99.9%,” Earl Davis said Wednesday on BNN Bloomberg Television. “Why do I say that? The central bankers actually want a recession.”