Can a recession be avoided? Deutsche Bank sees a looming disaster. Big Left's inflation is massive (and predicted).
When things get bad enough, the Fed boosts interest rates. Such behaviour is irreparable.
Street says the Fed can raise interest rates enough to eliminate inflation but not enough to recover from COVID-19. German economists are sceptical. Fed funds rate is 0.25 to 6%. Economists say rate hikes and a reduction in the Fed's balance sheet will cause a recession next year.
Inflation management will require more than a slight recession. They predict multiple percentage-point job gains. March was 3.6%.
Long we have the greatest inflation, it may take the Fed a while to reach its 2% target, say economists.
Goldman Sachs says inflation can be handled without a recession. The bank's economists said in a Friday report that a recession isn't essential, but growth should slow. This could cause a recession.
UBS said Monday that inflation should reduce and that higher interest rates don't trigger recessions.
Bidenflation must be abolished to avert a major recession. Downturn indicators exist.
Last month, trucking demand fell. Bank of America strategists believe a drop in trucking demand on March 1 could signal a recession.
Ken Hoexter manages Bank of America's trucking research. Tuesday's analyst notice was released. The truckload demand gauge touched its lowest level since June 2020.
This is "near freight depression levels," said Hoexter. The gauge drops 23% year.
Fox said, "Trucking can be a reliable indicator for the U.S. economy and is often considered to be a bellwether." 6 of 12 trucking recessions were followed by an economic downturn, according to Convoy Analysis.
April's yield curve inversion was also ominous. Recent years have seen 2-year Treasuries yield more than 10-year Treasuries. Morgan Stanley strategists predict the 2s10s curve inverts further and will invest all year.
Morgan Stanley, BlackRock, and other investors downplayed the inversion. BlackRock's Director of iShares Investment Strategy, Americas, doesn't expect a recession soon. we note many factors now that differ from previous yield curve Inversions." she said.
Psychological problems exist. Europe is at war. The economy will be affected.
Any generation-old knows these occurrences have happened before. The Democrats' next approach is simple: Blame the slump they produced on the new Republican Congress.
The preceding is a summary of an article that originally appeared on Republican Update.