Photo taken on June 22, 2022 shows the U.S. Federal Reserve building in Washington, D.C., the United States. (Xinhua/Liu Jie)
The United States is in a growth recession starting from the first half of 2022 with the housing industry already in recession, Yardeni said.
Yardeni said the Fed in some ways made a big mistake back in August 2020 by announcing a change of its long-term monetary policy strategy to give more weight to bring down unemployment than to keep a lid on inflation.
Though U.S. unemployment came down to about 3.5 percent over the past few months, inflation obviously made a huge comeback, leaving the Fed scrambling to deal with it, according to the investment strategist.
Yardeni said that the U.S. equity market has more downside than upside and the S&P 500 Index could retreat back to around 3,400 points, where the market hit a record high before the COVID-19 pandemic.
Since March, the Fed has lifted interest rates for five times, including three consecutive 75-basis-point rate hikes in June, July and September, boosting the Fed's benchmark interest rate to a range of 3-3.25 percent.
Li Yueru (L) of China gestures during the quarter-finals match between China and France at the FIBA Women's Basketball World Cup 2022 in Sydney, Australia, on Sept. 29, 2022. (Photo by Hu Jingchen/Xinhua)
Yang Liwei (R) of China drives the ball against Sarah Michel of France during the quarter-finals match between China and France at the FIBA Women's Basketball World Cup 2022 in Sydney, Australia, on Sept. 29, 2022. (Photo by Hu Jingchen/Xinhua)
Li Yueru (L) of China goes for a lay-up during the quarter-finals match between China and France at the FIBA Women's Basketball World Cup 2022 in Sydney, Australia, on Sept. 29, 2022. (Photo by Hu Jingchen/Xinhua)
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