This year's US recession is likely.

Economists at Nomura Holdings Inc. say that as the Federal Reserve raises interest rates to bring down prices, the US economy will likely fall into a mild recession by the end of 2022.

Nomura says that financial conditions will tighten more, consumer morale is deteriorating, and energy and food supply imbalances have intensified.

With economic momentum decreasing and the Fed dedicated to price stability, Nomura economists Aichi Amemiya and Robert Dent predict a moderate recession in the fourth quarter of 2022.

Excess savings and consumer balance sheets will assist slow economic decline, but strong inflation will restrict monetary and fiscal policies.

Nomura decreased its real GDP prediction for this year to 1.8% from 2.5%, and for next year to 1% from 1.3%.

With economic momentum decreasing and the Fed dedicated to price stability, Nomura economists Aichi Amemiya and Robert Dent predict a moderate recession in the fourth quarter of 2022.

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