Angel of Death Posted May 29 Share Posted May 29 Jan Hatzius, chief economist at Goldman Sachs Group Inc., noted that the US economy continues to strengthen and has a chance of avoiding a recession in the next 12 months. “We are further cutting our probability of a recession starting in the United States in the next 12 months, from 25% to 20%,” he highlighted in a report. He also commented that the main reason for his cuts is that recent data has strengthened "our confidence that in order to reduce inflation to an acceptable level, a recession will not be necessary." He noted that there are "solid reasons" to expect a continued relaxation of inflationary pressures. He estimated that the increase in interest rates that the Federal Reserve (Fed) could carry out next week will be the last. “We expect some slowdown in the next 2 quarters, mainly due to the sequential slowdown in real disposable income growth (especially when adjusted for the resumption of student debt payments in October) and a drag from the reduction of bank loans," Hatzius said. Likewise, he pointed out that the relaxation of financial conditions, the rebound in the real estate market and the current boom in factory construction "suggest that the US economy will continue to grow, although at a slower rate than the trend," reported Bloomberg Online. https://noticiasaldiayalahora.co/economia/economia-de-eeuu-continua-fortaleciendose-y-bajan-las-probabilidades-de-recesion/ Link to comment Share on other sites More sharing options...
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