Source: Wells Fargo Investment Institute, as of September 30, 2022. Subject to change.
- Gathering headwinds will likely expose the U.S. economy to higher recession risk beginning late 2022 and through the first half of 2023. Fallout from high inflation on interest rates and real incomes is our main outlook threat.
- The most visible risk in our outlook is excessive tightening of credit conditions, leaving leveraged sectors of the global economy exposed to an abrupt pullback.