Time to Start Preparing for a Recession Is Now, Rob Arnott Says

The Federal Reserve was in denial about inflation and moved too slowly in trying to quell rising prices. That’s now put it on a trajectory to create a recession, if it hasn’t already done so.

That’s according to Rob Arnott and Campbell Harvey at Research Affiliates, who said in a new paper that there’s no reason the economy needs to see a downturn. And yet, one may already be underway.

“The simple fact is recessions are usually created -- they don’t happen naturally,” Arnott said in an interview. “Economic expansions don’t die of old age -- they’re murdered by the Fed. And we’re seeing that happen again now.”