• "There is a very high chance the Fed ends up cutting rate towards ... the end of next year," Unicredit's Erik Nielsen tells CNBC.
  • The comments come amid growing concerns that both the U.S. and euro zone economies could be facing a recession.
  • The Atlanta Fed's GDPNow tracker now points to a 1% contraction for the second quarter, following a 1.6% slide in GDP in the first three months of the year.
Jerome Powell after speaking at a press conference in June, 2022.

Central banks around the world might have embarked upon a path of aggressive rate hikes — but not everyone is expecting this approach to last.

The U.S. Federal Reserve and the European Central Bank are among those seeking to tamper record inflation with rate hikes. The Fed increased its benchmark interest rate by 75 basis points to a range of 1.5%-1.75% in June, and Chair Jerome Powell has indicated there could be another similar move in July.