Both Fed and ECB are hawkish: predicting a bleak economic outlook for 2023

Last week, both Fed and ECB issued forecasts for an unpromising economic outlook in the first half of next year with: the last rate hike in 2022 and a rather tough hawkish stance. For the US economy, many opinions believe this is a misstep by the Fed because inflation in the US is on a rapid downward trend while recession risk is imminent. The Fed maintaining a hawkish stance will push the economy into an early recession with heavier damage.

In last week's articles, Viet Hustler analyzed in detail the recession risks for both the US and Europe. Therefore, this week's macroeconomics article on the blog will focus on 2 main questions:

• What is the message from Fed and ECB after last week's decision on rate hikes and maintaining high rates next year?

• What policy plans will the two major central banks of the world economy have for 2023?

FOMC meeting and Hawkish tone from Fed