J.P.Morgan announced forecasts, highlighting that the U.S economy may encounter mild recession in the Q4 of 2023, considering the predictions assuming that Fed will extra stiffen monetary policy to tame inflation.

It is expected by the investment bank that the economy will shrink by 0.5% by the end of 2023 and could extend to the year after (2024), it is also assumed that the GDP in 2023 may drop to 1%.

Another 100 bps hikes from Fed till March 2023 are predicted by the firm (JPM) following 300 bps raise till now for the current year.

With a prediction of 50 bps hike for December, escorted by 25bps in February.

U.S. CPI is envisioned to drop by the end of 2023 at 4.1% and the personal consumption expenditure is expected to cool at 3.4%.

The firm assumed that due to the deceleration of the aggregate demand, the U.S economy could get rid of more than million jobs in the halfway of 2024, where fed could start softening the rate hikes in the Q2 of 2024.