Nouriel Roubini. A recession, a debt crisis, and stagflation will hit the US economy this year, Nouriel Roubini said. Roubini, aka Wall Street’s "Dr. Doom," has said for months another financial crisis will hit. Central bankers will be forced to quit their inflation fight, with out-of-control prices, he said. A "perfect storm" is brewing, and markets this year are going to get hit with a recession, a debt crisis, and out-of-control inflation, the economist Nouriel "Dr. Doom" Roubini said. Roubini, one of the first economists to call the 2008 recession, has been warning for months of a stagflationary debt crisis , which would combine the worst aspects of ’70s-style stagflation and the ’08 debt crisis. "I do believe that a stagflationary crisis is going to emerge this year," Roubini said Thursday in an interview with Australia’s ABC . With consumer inflation still sticky at 6.4%, Roubini said he estimated that the Federal Reserve would need to lift benchmark rates "well above" 6% for inflation to fall back to its 2% target. That could spark a severe recession, a stock-market crash, and an explosion in debt defaults, leaving the Fed with no choice but to back off its inflation fight […]
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