Staff Reports
The latest big brain thinking from the National Association for Business Economics (NABE) has dropped a bomb of good news for the economy! According to these business eggheads, the economy is set to explode like a firework on the 4th of July this year. The initial predictions were as limp as a wet noodle, just 1.3% growth, but now these economic gurus are saying 2.2% expansion! That’s like going from a kiddie pool to a full-blown water park folks!
The NABE President, Ellen Zentner, who also happens to be the top money smarty at Morgan Stanley, has said that the February growth forecast is all thanks to spending by average Joes and Janes, business investments, house-building, and Uncle Sam’s spending. It’s like a good old-fashioned spending spree, and who doesn’t love a good shopping trip?
— Sorgatoni (@Sorghaghtani) February 26, 2024
But wait, there’s more! These NABE folks are also saying that there’s a 76% chance of a “soft landing” this year. That’s econo-speak for the Federal Reserve not crashing the economy into a recession while trying to stop inflation. Some smartypants worry that the Fed might make like a wrecking ball and knock the economy down, but the NABE says, “Not so fast, smarty pants!”
The Fed has been cranking up interest rates since last year faster than a jackrabbit on a date, all in an effort to cramp down on inflation. But now, the NABE says, “Hold your horses, Fed!” They reckon the Fed will start cutting rates sometime this year, probably not until the summer though. It’s like telling the Fed, “Hey, slow down there, don’t press down too hard on the gas pedal!”
And just when you thought this party couldn’t get any wilder, the NABE panelists are saying that investors also reckon the Fed will start cooling off the rates in June. It’s like a big old guessing game of when the Fed will start playing with the interest rates like a yo-yo.
So, in summary, the NABE crew is predicting the economy is about to go boom, the Fed won’t accidentally crash it, and it’s all going to be like a big jamboree of spending and rate-cutting. It’s like a big family picnic with the economy, and everyone’s invited! Let’s just hope the Fed doesn’t bring any soggy sandwiches to the party!
