Major US bank predicts recession in 2020
Difficult times look like they’re ahead in the financial markets. Might this be where cryptocurrency can help?
The volatile nature of the cryptocurrency market over the past year has affected confidence in it in some quarters. However, it’s more traditional markets that may be causing headaches in the next year or two, with a difficult 2020 on the horizon.
In the US, that’s the year of the next Presidential election, which always gives the markets a bit of worry. But also, one of America’s major banks – JPMorgan Chase – is now predicting that there’s a good chance of a full-blown recession hitting as well.
As per a report at Bloomberg, a model put together by JPMorgan Chase is now predicting a 60% chance of a recession in 2020, with an 80% chance of a recession by 2021. The gloomy outlook takes into account consumer and business sentiment amongst its measures, along with the growth of wages amongst other factors. By amalgamating the information, the bank has come up with its outlook, one that appears more pessimistic than the predictions of their peers.
This, inevitably, has led to questions over whether cryptocurrency can help soften the blow of a recession in fiat-backed currencies. Crypto currently is mired in questions of regulation over in the States, but the idea of a borderlines, regulation-light currency has led to questions over whether crypto can ride out the impacts of what could be a crippling recession.
Obviously it’s all a case of wait and see, and things – as has been proven in recent times- can change dramatically in both politics and finance, notably in the US.