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BMO Fixed Income Head Sees ‘99.9%’ Odds of Fed-Induced Recession
It will be nearly impossible for the North American economy to avoid a recession because interest rates will have to rise much higher to quell inflation, according to the head of fixed income at Bank of Montreal’s fund management division. “The likelihood of a recession is 99.9%,” Earl Davis said Wednesday on BNN Bloomberg Television. “Why do I say that? The central bankers actually want a recession.” Davis, who’s chief of fixed income and money markets at BMO Global Asset Management, said a recession could easily drag into 2024. It won’t necessarily be a mild contraction, he said, because unlike past ... (full story)