After a year of recession fears, some economists are now saying those financial concerns are cooling as the U.S. job market continues to show resilience. Rick Newman, a senior columnist at Yahoo Finance, joins CBS News to discuss what could be ahead for the economy.
#news #economy #recession
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BREAKING: Recession News
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Economists Reversing Course on Recession Fears
In recent months, economists around the world have been on edge, expressing growing concerns about the possibility of a global recession. However, in a puzzling turn of events, many economists seem to be reversing their stance and becoming less fearful of an imminent economic downturn.
The anxiety surrounding a potential recession had been primarily driven by escalating trade tensions between the United States and China, as well as a slowing global economy. These factors had led to a decline in business confidence, decreased investment, and weaker manufacturing activity in several key economies.
Yet, despite these initial fears, recent economic indicators are now painting a more positive picture. Investors and economists are gradually gaining confidence, primarily due to a series of unexpected positive outcomes. Firstly, there seems to be a thaw in the trade war between China and the US, with both sides signaling a willingness to negotiate and potentially reach an agreement. This news has been welcomed by markets, as a resolution to the trade dispute would provide a significant boost to global economic sentiment.
Furthermore, central banks around the world, including the US Federal Reserve, have adopted a more accommodative monetary policy, cutting interest rates to stimulate borrowing and investment. Lower borrowing costs encourage businesses and consumers to spend and invest, injecting much-needed liquidity into the economy.
Another favorable sign is the resilience of the labor market. Unemployment rates remain low in many parts of the world, especially in developed economies. This indicates that people are still finding jobs and indicates a level of economic stability. A thriving job market means increased consumer spending, which further supports economic growth.
Additionally, government spending has played a significant role in alleviating recession fears. Heightened fiscal stimulus efforts by various governments, through increased infrastructure spending and tax cuts, have provided a fiscal injection that helps support overall economic activity.
While it is crucial to acknowledge that the global economy still faces significant challenges and uncertainties, the current reversal in economists’ stance is a positive signal. It highlights the resilience and adaptability of economies to navigate through turbulent times. However, it is important to remain cautious, as the situation remains fluid, and any unforeseen adverse events could quickly change this optimistic outlook.
In conclusion, economists are cautiously reversing course regarding their recession concerns. Positive developments in trade, accommodative monetary policy, robust labor markets, and government stimulus efforts have all contributed to this new sentiment. While the global economy is not out of the woods yet, these recent developments provide hope that a recession may be avoided or at least mitigated. As always, ongoing monitoring and prudent policy decisions will be critical in ensuring that the world economy continues to progress towards stability and growth.
Certainly! Economic downturns, like recessions, can happen due to factors outside a country's control. Right now, it seems that the United States is having a bit of trouble maintaining its status as the main currency controller. This is making it harder to manage the rising prices of goods and to trade stocks and oil. As a result, we might be moving towards a new way of organizing global affairs where multiple countries share power.
God! You all have a really hard time telling the truth…that's b/c you've been turned over to a reprobate mind!!!
If you want to be presenter of the News we the people want to know if you're a human being and not robot repeating what you been train to say. So who are you ?
In light of the ongoing global economic crisis, it is crucial for everyone to prioritize investing in diverse sources of income that are not reliant on the government. This includes exploring opportunities in stocks, gold, silver, and digital currencies. Despite the challenging economic situation, it remains a favorable time to consider these investments.
Recessions are part of the economic cycle, all you can do is make sure you're prepared and plan accordingly. I graduated into a recession (2009). My 1st job after college was aerial acrobat on cruise ships. Today I'm a VP at a global company, own 3 rental properties, invest in stocks and biz, built my own business, and have my net worth increase by $500k in the last 4 years.
would you consider doing a video with ideas of financial options I can explore as the economy is heading towards severe recession. I am under pressure to grow my reserve of $120k.
Inflation hits people a lot harder than a crashing stock or housing market as it directly affects people's cost of living that people immediately feel the impact of. It's not surprising negative market sentiment is so high now. We really need help to survive in this Economy. The fin-Market;s have underperformed the U.S. economy as fear of inflation hammers the prices of stock;s and bonds. . It might sound basic or generic, but getting in touch with a financial adviser was how I was able to outperform the market and raise a profit of $450,000 since Jan 2022. For me, its the most ideal way to jump into the fin-market these day.
Some economists have projected that both the U.S. and parts of Europe could slip into a recession for a portion of 2023. A global recession, defined as a contraction in annual global per capita income, is more rare because China and emerging markets often grow faster than more developed economies. Essentially the world economy is considered to be in recession if economic growth falls behind population growth.
I’m a 72 y.o. Investor/trader and the best way to anticipate turning points is to look at the following:
1. Inverted yield curve on govt securities
2. Discount of palladium to gold
3. Sentiment and capitulation
4. New records of consumer debt
The fact that most economists have given up waiting for a recession is a perfect indication that a recession is imminent. In addition to all of the above are flashing red. Consumer debt hit an all time high with over 1 trillion of the total in credit card debt.
What we are witnessing is the perfect storm for a moderate to severe recession. The fed has also demonstrated that they will abandon any monetary discipline flooding the markets with cheap money. During COVID, Trump was leaning on Powell for negative interest rates as they pumped 7 trillion in funds to save the system in addition to another 7 trillion in fiscal stimulus from the Treasury department.
econcosmitis need t osrtarto occonsuttlgin sociolsogisits you cant runn sociiety on money adn sceicine lone you ahve to udnertsadn npscyhology and sociology as well…………………….. we young people dont want to lose our jobs and dont want involvement in extroritinist scoieiteitiies. we intjs adn entsj. infjs and enfjs are also extremely frsuutureated by the enfp midset fo disney and esfp mindset of hollywood. asn an intj myseslf i know scoieity better than most. both china and america.
excess saving from covid? what planet does this guy live on?
If we keep changing the definition…we ll all live happily very after…rofl
Thanks bud for keepin us financially Educated! Regardless of how bad it gets on the economy, I still make over $13,000 every single week…
This is an example of the news making the news instead of reporting on it. Lots of economic alarms going off right now (inverted yield curve, 2 year treasury bonds worth more than 10 year notes, rising interest rates, rising bank rates) that things don't look so hot. Add to that all of the environmental factors such as war, ongoing housing shortages, inflation, too much money chasing too little goods and everyone with a pair of eyes can see where this is going. Wide eyed, too afraid to blink, these guys reporting don't even believe what they're saying.
This guy explained himself really well
This is precisely why people need to save save save
Most American's have less than 1k in savings … so who has all of this excess savings?
It’s because the amount of money that was borrowed, hasn’t run out yet. Companies will hold on as long as they can cause their investors don’t want to face realityZ
When you take a step back and look at it, life is a strange and lovely experience. Working with a financial expert may genuinely set you up for success in life. I'm glad I was able to contact my coach, Rodger Michael Karl, earlier this year since, while others were complaining about the downturn, I was busy cashing out from my portfolio, eventually making over six figures in the first quarter alone…
" keep enjoying a pretty good economy "
Are you f***ing kidding me? It's clear you are a paid analyst by this legacy media which is owned by BlackRock and the rest of the gang scr*wing everyone. Your goal is clear and it is to lie in order to show that the current government is not a complete sell out and that they are doing a good job.
Printing billions out of thin air is the reason for this global inflation as the US dollar is the main trade and reserve currency. Maybe if you weren't a paid analyst, you would have mentioned that.