Wells Fargo sees central banks moving to support growth by end of 2023

JimVallee

Flying drone with camera

Wells Fargo said that it sees central banks moving to support growth by end of 2023 in order to avoid a deep or prolonged recession.

The bank said in a recent note that interests rates will likely rise into early 2023, but tightening cycles should end as inflation abates, although core inflation may remain elevated. It sees certain G10 central banks easing their monetary policies by the end of 2023, with some in emerging economies starting earlier.

Additional rate hikes by the Federal Reserve and European Central Bank will stoke volatility in the financial markets, which should boost the US dollar by making it an appealing safe haven. The bank said it continues to believe the dollar will see “renewed strength” in early 2023.

Wells Fargo (WFC) added that it sees 35% of the global economy entering recession next year, with global GDP growth of only 1.7%, the slowest growth rate since the early 1980s.

For another look at where the market is headed in 2023, check out SA contributor Wright Research’s “S&P 500 2023: A Mixture of the early 2000s and 1980s?”

See also  Business News | Stock and Share Market News | Finance News


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