U.S. Economy Is Headed for a Downturn, Wells Fargo CEO Says

Wells Fargo & Co. CEO Charlie Scharf said Tuesday there was “no question” that the U.S. is headed for an economic downturn.

The Federal Reserve has raised rates twice this year and plans to keep doing so, part of its bid to cool the economy and curb red-hot inflation. Higher rates have pushed up borrowing costs for mortgages, credit cards and other loans. The Fed’s moves have raised the question of whether the U.S. is headed toward a recession, which some investors fear could happen if the Fed raises rates too quickly.