The United States will likely be in crisis by the end of 2022

The United States will likely be in crisis by the end of 2022

In a June 20 note, Nomura said that despite the Fed's main offensive line since November 2021, inflationary pressures have not abated significantly and may have worsened.

According to economists Nomura Holdings Inc. The US economy is likely to run a normal deficit by the end of 2022.

Nomura economists Achimia and Robert Dent wrote in a note on June 20, "A moderate crisis is likely to begin."

Nomura warns that the financial situation will worsen as consumer confidence deteriorates, energy and food prices fall and global development prospects deteriorate.

“As monthly inflation is likely to remain elevated through 2022, we are confident that the Fed will initially respond to the crisis,” Nomura analysts wrote in a note.

They expect the rate hike to continue through 2023, but with a final yield slightly lower than 3.50-3.75% in February, compared to the earlier forecast of 3.75-4.00% in March.

Nomura lowered its real GDP forecast for this year to 1.8 percent, up from 2.5 percent, while its forecast for next year is 1 percent lower than the previous 1.3 percent.

According to the financial services company, inflation and a single order, the Federal Reserve, are among the contributing factors to the crisis.

At very high levels, persistently high inflation and increasing signs of random inflation are the two main reasons for our unpredictable growth.

Despite the Federal Reserve's fiercest competition since November 2021, inflationary pressures have not abated significantly and may have worsened.

In this regard, Nomura analysts believe that the Federal Reserve's efforts to offset price pressures to match demand with limited supply will ultimately lead to a weaker economy. Federal Reserve officials have made it clear that they will prioritize price stability, which has been specifically mentioned by the agency.