US and European Economies Closely Intertwined, Raising Risk of Global Recession
• Tight correlation between US and European bond yields signals a hard landing and recession risk
• European Central Bank looking to cut rates quickly if US economy tips into downturn
• Investors remain bullish on US economy and markets, expecting Fed to cut rates in 2024
• Economists warn recession risks still alive as labor market set to weaken
• New York Fed model shows 61% chance of recession by January 2024