17:38 - 18.04.2023

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April 18, Fineko/abc.az. The U.S. economy will plunge into moderate recession in the 2nd half of this year, ABC.AZ reports, quoting Roger Hallam, global head of rates at Vanguard.

He added that tougher credit conditions after recent bank failures will lead the U.S. economy to moderate recession in the 2nd half of this year.

"This will contribute to the gradual growth of long-term bonds with the expectation of lower interest rates. We believe the tightening of credit standards will lead the economy to recession in the 2nd half of this year. In the short-term prospect, interest rate volatility will remain high. The current yield levels of 10-year U.S. treasury bonds during possible recession will provide investors with a good opportunity both to compensate for losses from risky assets such as stocks and to start expanding their portfolios," Hallam said.