If we have negative GDP again next quarter, we’ll technically be in a recession.
The Fed is in a very tough spot.
Inflation is still sticky in certain areas but growth and labor are stalling out. The Fed can’t cut too aggressively without risking another inflation spike and they can’t hold rates this high without pushing the economy further into contraction.
There are downsides to both cutting and holding rates here but in my opinion the Fed is behind the curve and needs to start easing. They shouldn’t wait for the economy to break before cutting
I don’t think a recession is inevitable but the warning signs are flashing.
It’s time for Powell to step in
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
