(The Center Square) – The Dallas Federal Reserve is warning that ongoing sanctions against Russia will lead to a global recession.
The warning, which comes in the Fed report “The Russian Oil Shock of 2022,” was made prior to President Joe Biden on Monday calling for additional sanctions against Russia after reports of mass killings and war crimes committed by Russian troops in Bucha, Ukraine.
Russia denies the claims made by Ukrainian eye-witnesses. Biden called for a war crimes tribunal and the U.N. High Commissioner for Human Rights called for an investigation.
If Russian sanctions continue, and international markets don’t have access to Russian exports of oil, natural gas and key agricultural exports for the rest of the year, a global recession is inevitable, Dallas Federal Reserve economists project in the report.
Over 1,000 major investors believe a worldwide recession is just around the corner, definitive survey says
The Ukraine War has sent international markets roiling and investor morale spiraling, just as the global economy appeared ready to rebound from the stagnant years of the pandemic.
Investor confidence in the eurozone is now at the lowest it’s been since the early days of the pandemic in July 2020, according to a new survey by the Germany-based Sentix economic indicator.
Even worse, it finds that a worldwide recession is just around the corner, and Europe will be hit first and hardest. But there’s an even worse finding tucked into the survey.
Morale also fell in the U.S. and Asia, and while the economic outlook in these regions is higher than the global average, economic performance forecasts in every part of the world are all trending negative.
RUSSIA: RUBLE Bounce And Avoiding Sanctions.
Capital controls and exchange control grip on producers and the impact on the economy.
— Daniel Lacalle (@dlacalle_IA) April 5, 2022