Fed U-turn likely if US enters recession but risk-appetite may only gradually increase

[ad_1] Final estimates for GDP for the March quarter in the US suggested the world’s largest economy shrank 1.6 percent in the quarter. but at the same time, irrigated Chair Jerome Powell made a do-it-yourself statement, saying the Fed will not allow the economy to slip into a high inflation regime, even if it means raising interest rates to levels that risk growth. If the US economy, or for that matter, developed markets, slows, it will exacerbate demand concerns and could affect commodity prices. The recent surge in COVID cases…