US: Chances of a recession rise on Wall Street as underlying weaknesses appear in the economy
Rising Recession Concerns Amid Economic Uncertainty
Last week, Federal Reserve Chair Jerome Powell dismissed concerns about stagflation threatening the U.S. economy. However, the next Fed leader could encounter greater difficulties, as more Wall Street analysts now anticipate a recession. This shift in outlook is partly due to the ongoing conflict involving Iran and the possibility of increasing prices.
Recently, economists have become more cautious, increasing the likelihood of a U.S. economic downturn as geopolitical tensions rise and the labor market continues to show signs of weakness. Moody’s Analytics has updated its model, now estimating a 48.6% chance of recession within the next year. Goldman Sachs has also raised its projections in response to these developments.
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