Good morning. US recession is now certainly a possibility, headwinds for Europe’s M&A activity, political crisis in Bulgaria, and a chastised Macron. Here’s what people are talking about.
Federal Reserve Chair Jerome Powell gave his most explicit acknowledgment to date that steep interest-rate hikes could tip the US economy into recession and called a soft landing “very challenging.” In his opening remarks before the Senate Banking Committee, Powell said that officials “anticipate that ongoing rate increases will be appropriate,” to cool the hottest price pressures in 40 years. Deutsche Bank and Citigroup now see a 50% recession chance as rates rise.