- 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.