Last year, most major Wall Street analysts and portfolio managers believed the U.S. economy would inevitably slide into recession in 2023 as the Federal...
Last year, most major Wall Street analysts and portfolio managers believed the U.S. economy would inevitably slide into recession in 2023 as the Federal Reserve raised interest rates. The only real question was how bad would it get?
Goldman Sach’s chief economist, Jan Hatzius, recently dismissed the notion that a recession lies ahead, while a JP Morgan’s chief global market strategist, Marko Kolanovic, said the chances of a so-called “soft landing” for the U.S. economy are increasing. At the same time, the Fed has shrunk its holdings of Treasurys and mortgage bonds by opting not to reinvest the principal as some of these bonds mature.“By many measures, monetary policy is only moderately restrictive, and it has been that way for less than six months—neither condition likely being sufficient to tip the economy into recession,” the UBS team said in a note.
As inflation has waned this year, many Americans are finding themselves with excess savings in reserve. Partly as result, the most recent University of Michigan’s Consumer Sentiment survey showed U.S. consumers are more optimistic than at any time in nearly two years. One example is the ratio of household debt to GDP, which is frequently cited by economists as a gauge of the consumers’ health, which appears manageable.
More than 25 million jobs have been created since the U.S. economic recovery started in May 2020, according to U.S. government data and JOLTS data show there are still roughly 10 million job openings. Economy experiences a ‘rolling recession’ When COVID-19 first spread around the world, demand for goods soared, while demand for services like travel plummeted. Now, as the recovery progresses, the opposite is happening.
“As a result, manufacturing output has contracted since last fall and has effectively been in a recession. Now that spending on goods, especially autos, has been rising again in 2023, the manufacturing sector should be able to avoid a deep slump and start to recover by year-end.”
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Asian stocks drop as China growth worries overshadow Wall Street gainsShares were mostly lower Tuesday in Asia as optimism over a Wall Street rally was countered by worries about the Chinese economy.
Read more »
Bank of America is about to report earnings — here's what Wall Street expectsWhile analysts expected Bank of America to be one of the top beneficiaries of rising interest rates, it hasn't played out that way.
Read more »
10 reasons why the recession Wall Street predicted to death never arrived10 reasons why the recession that Wall Street predicted to death never showed up
Read more »
Asia markets set for mixed open as investors digest Wall Street's strong earningsThe Reuters Tankan survey, a measure of buisness confidence in Japan, fell for the first time in six months
Read more »
Here's what Wall Street is looking for in Tesla's 2nd-quarter earnings'Margins, margins, margins': Here's what Wall Street is looking for in Tesla's 2nd-quarter earnings
Read more »
Wall Street eyes best open in 15 months amid earnings optimismU.S. stock futures little changed Wednesday, leaving Wall Street benchmarks on course for their highest open since April 2022 as earnings underpin sentiment.
Read more »