JP Morgan predicts mild US recession

J.P. Morgan economists predict a  "mild recession" in the United States in the back half of next year given expectations for the Federal Reserve to tighten monetary policy further in its battle against inflation.

The investment bank sees the economy contracting by 0.5 per cent by the fourth quarter of next year, and possibly dragging into 2024. That is seen cutting 2023 U.S. gross domestic product (GDP) to 1 per cent, almost half of its forecast for 2022.