USA - Citigroup has issued an explicit recession warning for the United States, advising clients to wind down exposure to risky assets and prepare to ride out the storm. The bank’s global investment team said the US Federal Reserve over-tightened monetary policy last year, waiting too long to stop raising interest rates or to slow the pace of quantitative tightening (reverse QE). The economy is already shot below the waterline and will mostly likely succumb to the textbook pathologies of a fading expansion. “The US economy seems to be transitioning into a stagnation phase after a brief period of goldilocks on a sugar high of fiscal stimulus. We advise investors to prepare for recession,” it said.