As the Federal Reserve prepares to make its decision on interest rates, economists and financial experts are weighing in on what the future may hold for the economy. According to Northwestern Mutual’s Chief Investment Strategist, Brent Schutte, the Fed is likely to leave rates elevated, which could potentially lead to a shallow recession.
Schutte believes that the Fed will prioritize keeping inflation in check over stimulating economic growth, leading them to maintain higher interest rates. While this may help to prevent overheating in the economy, it could also slow down consumer spending and investment, two key drivers of economic growth.
If interest rates remain high, borrowing costs will increase for businesses and consumers, making it more expensive to take out loans or make large purchases. This could lead to a decrease in consumer spending and business investment, which could in turn drag down economic growth.
Schutte predicts that this combination of higher interest rates and reduced spending could result in a shallow recession, characterized by slower growth and a slight uptick in unemployment. While he does not believe that this recession will be as severe as the one seen in 2008, he warns that it could still have significant implications for the economy.
In order to prepare for a potential recession, Schutte recommends that investors diversify their portfolios and focus on companies with strong fundamentals. He also suggests keeping an eye on key economic indicators, such as consumer spending and business investment, to gauge the health of the economy.
While the prospect of a shallow recession may be concerning, Schutte remains optimistic about the long-term outlook for the economy. He believes that the U.S. economy is fundamentally strong and resilient, and that it will be able to weather any economic challenges that may arise.
As the Fed makes its decision on interest rates, it will be important for investors and policymakers to closely monitor the economic landscape and make informed decisions to protect their financial well-being. By staying informed and proactive, individuals and businesses can navigate the potential challenges ahead and emerge stronger on the other side.
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Most of the CPI data is been revised a lot of time to make seem like everything is OK but it’s not remember we print a lot of money all this money is everywhere. Just like 2008. We let everybody own the house in the market crash samples that.
I think the stock market they just have a rally ask yourself if you’re going to grocery store everything has gone down I don’t think so. Everything’s going up they give you abroad idea what going on all the stuff is makeover I suggest people save your money to buy all these crap cheap.
Hyperinflation is coming
"shallow"
At this point, Wall street mofos will create their only category for inflation numbers, "excluding this, excluding that, hey inflation is 0!".
This man just schooled all these Biden cheerleaders. It’s over people. It’s all crumbling.
No, it’s all about handing out the tax dollar dude
I know when analysts make a good call they get bonus. What's the consequence of a Chief Investment Officer making an incorrect call that affects all of the firm managed asset's return? We definitely will circle back in 6 months on this video.
The fed argued that they raised rates to fight inflation and preserve their weapon against a recession. If that’s the case, why would they declare multiple rate cuts for 2024? I think Congress is coercing the fed into inducing inflation so they can continue their wild spending habits. Given a strong economy, and not meeting their 2% inflation goal yet… There’s no other explanation that makes sense otherwise.
Core CPI (ex food and energy) surged to 4.8% in January. Services inflation has been increasing and surged last month. Energy has really been doing the heavy lifting keeping CPI down. If energy rallies we are screwed.
He is overreacting as usual
The recession is coming just wait
0.3% inflation month over month isn't good. inflation is likely to go higher from here