Only 'miracle' stands in way of US recession

As Fed raises rates, economy can't dodge decline, influential analyst says

The United States will need a "miracle" to steer clear of a recession, according to a leading economist.

"We'll definitely have a recession as the lagged impacts of this major monetary tightening start to kick in," Stephen Roach, a former chairman of Morgan Stanley Asia, said on Monday. "They haven't kicked in at all right now."

Roach, also a Yale University senior fellow and a former Federal Reserve economist, suggested on CNBC's Fast Money program that Federal Reserve Chairman Jerome Powell has no choice but to take a Paul Volcker-style approach to tightening rates.