Recession Is Ongoing In The US, Wall Street Veteran Says

It has been just revealed that there is a massive recession that is ongoing in the US as we speak. Check out what a Wall Street veteran has to say about this.

According to Custodia Bank CEO Caitlin Long, inflation is becoming a concern once again, and as a result, she believes the Federal Reserve will continue to raise interest rates in order to tackle it.

Long warns that people may be surprised by the amount of rate hikes that occur, but she feels it’s necessary to control inflation.

She disagrees with the consensus that inflation has been under control, pointing to recent data that supports an increase in inflation.

Long states that corporate America is still in a good financial position due to their effective use of the rising interest rate environment.

As a former Wall Street worker who collaborated with corporate treasurers, Long explains that corporations took advantage of low long-term interest rates and are now borrowing at around 2%.

By investing in T-bills or money market funds, these corporations are earning between 5% to 5.25% on their cash. As a result, these large companies are not only doing well but are also growing bigger.

However, Long also notes that other sectors of the US economy are currently experiencing a recession.

“[The recession is] already happening in certain sectors. It’s already happening in the labor markets, but recognize that it’s very tilted, it’s very unbalanced. What I just described, these large corporations getting richer, it’s the old phrase that ‘The rich have assets and the poor have debt.’

The notes shared by the online publication the Daily Hodl continue and note the following: “As the FED continues to raise rates, the rich are getting richer because they’re the ones that are owning these T-bills that are paying 5.25% risk-free right now.”