Two-thirds of corporate finance chiefs say recession will hit the US within the next 12 months

A modern survey of chief financial officers found that the majority think about a recession will strike inside the subsequent 12 months, and none think about the US financial system will escape a downturn.

The CNBC CFO Council survey launched on Thursday found that 68 p.c of CFOs responding to the survey projected {{that a}} recession will occur by the primary half of 2023.

No CFO predicted a recession any later than the second half of subsequent yr, and no CFO surveyed thinks the financial system will stay away from a recession.

It marks the newest warning sign that the US financial system could very nicely be headed in direction of a cliff after a interval of explosive improvement, as hovering vitality costs and the Federal Reserve’s cost hikes weigh on progress.

The CNBC survey found that over 40 p.c of CFOs cite inflation as the very best exterior menace to their enterprise, and nearly 1 / 4 cite Federal Reserve protection as the biggest menace challenge.

In a bid to tame inflation, the Fed has elevated its protection charge of curiosity by 75 basis elements since March, and has begun trimming its $9 trillion steadiness sheet by selling off bonds it bought up by the COVID-19 pandemic.

The Fed is anticipated to hike the in a single day cost by half a proportion degree at each of its subsequent conferences this month and in July.