American Financial Strategist: The US economy is in a "rolling recession" or may evolve into a comprehensive recession at any time. The market | US | Economy
Liz Ann Sanders, Chief Investment Strategist at Jiaxing Wealth Management
On September 12th, according to the Business Insider website, Liz Ann Sanders, Chief Investment Strategist at Jiaxing Wealth Management, a leader in the US personal financial services market, said that the US economy is in a period of "rolling recession" and a comprehensive recession may be imminent.
The leading economic indicators of the World Federation of Large Enterprises saw their 16th consecutive month of decline in July. Sanders stated in a recent program that "the LEI has completely collapsed," and apart from the ongoing economic recession, "we have never seen such a deterioration in the LEI.". Sanders stated that several US industries, including consumer goods and manufacturing, have experienced a significant slowdown in growth, and these industries are among the "first to see cracks and weakness" in the economy. Therefore, she believes that the best scenario is not an economic soft landing, but a "rolling recession", where different parts of the economy are in trouble at different times, and a comprehensive recession is also a more likely outcome.
In response to the high inflation rate of 9% in 2022, the Federal Reserve has aggressively raised interest rates from nearly zero to over 5% over the past 18 months. In recent months, Wall Street has increasingly agreed that the Federal Reserve will significantly lower interest rates in 2024. However, Sanders stated that investors should not have hope for a significant interest rate cut next year, as the view of rate cuts is often wrapped up in a bullish stock market, high economic growth and low inflation coexisting, and the economy almost never landing. This is not the case in reality, and the Federal Reserve may have to start counterattacking market expectations for five rate cuts next year.
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