A hard-landing recession is guaranteed as the full impact of Fed rate hikes have yet to hit the economy, Morgan Stanley's chief economist says

Tue, 02/27/2024 - 10:18

A hard landing is guaranteed for the US Morgan Stanley's chief US economist.
That's because the full impacts of Fed tightening haven't been fully felt in the economy.
It could take 18 months after the last rate hike to feel the full weight of higher rates, economists say.

A hard-landing recession is certain to come for the economy, and high rates are to blame even as markets start positioning for the Federal Reserve to loosen monetary policy this year, according to Ellen Zentner, Morgan Stanley's chief US economist.