The American economy will likely go into recession by the end of the year, with the Federal Reserve continuing to raise interest rates into 2023.

Bloomberg cited economists at Nomura Holdings Inc., who warned that the economy is predicted to continue to shrink, with a further contraction of consumer confidence as energy and food supply costs soar further and global growth stalls.

“With rapidly slowing growth momentum and a Fed committed to restoring price stability, we believe a mild recession starting in the fourth quarter of 2022 is now more likely than not,” Nomura economists Aichi Amemiya and Robert Dent said in a Monday note.

While they detailed that an excess of personal savings will serve to lessen the pace of a contracting economy, they underlined the fact that record inflation levels will hamper monetary and fiscal policy.

They also lowered their GDP forecast for 2022 from 2.5 percent to 1.8 percent.

The prediction came in response to U.S. Treasury Secretary Janet Yellen’s Sunday forecast that “unacceptably high” prices will continue into 2022 and that she sees the US economy slowing.