The US economy is in for rollercoaster inflation and could be headed for an ultra-rare 'full employment recession,' BlackRock says
, strategists predicted, having called a US recession"foretold" in previous notes.
Included in that new regime will be a shortage of workers, due to aging populations in major economies. That could incentivize firms to cling onto workers during downturns, which is also bad news for stocks. "Broad worker shortages could create incentives for companies to hold onto workers, even if sales decline, for fear of not being able to hire them back," the BlackRock strategists said."This poses the unusual possibility of 'full employment recessions' in the US and Europe."
They continued:"That could take a bigger toll on corporate profit margins than in the past as companies maintain employment creating a tough outlook for developed-market equities." Markets are expecting the Fed to lift its interest rate target range to 5.25%-5.5% this week as it continues to tame inflation, though high rates are said to raise the risk of recession. The New York Fed sees a
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