Recession can be severe if Fed raises one more time: Peter Cardillo

The United States Federal Reserve has brought some finality to the rate cycle. One and done it said, but the market after rising fell probably reacting to US Treasury Secretary Janet Yellen's statement that the government is not looking at any insurance of all deposits. US yields and the dollar have fallen, but so have most equity markets. Therefore, the state of the global economy is a hotly debated topic among experts in the financial industry.

In an interview with CNBC-TV18, Peter Cardillo, Chief Market Economist at Spartan Capital Securities said that after the Fed announcement, he expects the possibility of a recession if the Federal Reserve raises rates again.

He said, “Yes, we are headed for a recession. If they raise one more time, we will probably have a mild recession. But if they up to raise, let's say, by another 50 basis points, then the recession could be more severe.”