Chris Harvey, Wells Fargo Securities head of equity strategy, and Frances Donald, Manulife Investment Management chief economist and strategist, join ‘The Exchange’ to discuss the case for a recession in the back half of this year, and the rationale behind the Fed’s pause. For access to live and exclusive video from CNBC subscribe to CNBC PRO:
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U.S. economy headed toward growth slowdown, says Manulife’s Frances Donald
The United States’ economy has been on a steady growth trajectory for several years, becoming one of the strongest in the world. However, according to Frances Donald, Global Chief Economist and Head of Macro Strategy at Manulife Investment Management, this growth may be set to slow down in the coming years.
Donald recently expressed her concerns about the future of the U.S. economy, stating that various indicators point towards a potential slowdown. She highlighted several key factors that contribute to her prediction.
One of the primary concerns is the deceleration in job growth. The U.S. labor market has experienced robust gains in recent years, with consistently low unemployment rates. However, Donald believes that the impressive job growth rates may not be sustainable in the long run. As the economy reaches full employment, it becomes increasingly challenging to maintain such rapid expansion.
Another factor contributing to the projected slowdown is the fading effects of fiscal stimulus. Following the 2008 financial crisis, the U.S. government implemented various stimulus measures to spur economic growth. While these initiatives have undeniably played a role in the country’s recovery, their impact is waning over time. As the effects of fiscal stimulus wear off, the economy may struggle to maintain its current growth rate.
Donald also points out that global economic headwinds could further hinder the U.S. economy. The ongoing trade tensions between the United States and China, as well as other countries, have created uncertainty and impacted business confidence. As a result, companies may postpone investments and hiring plans, leading to potential economic slowdown.
Moreover, there are concerns about productivity growth in the U.S. economy. Despite technological advancements and innovations, productivity growth has remained relatively weak, indicating a potential inefficiency in resource allocation and utilization. This lack of productivity growth not only affects the overall economic expansion but also has implications for workers’ wages and living standards.
Despite these concerns, it is important to note that a slowdown in economic growth does not necessarily indicate a recession or a contraction. Instead, it suggests a deceleration in the pace of expansion. The U.S. economy has proven resilient in the face of challenges in the past, and it is likely that policymakers will take appropriate measures to address any potential slowdown.
It is crucial for investors and individuals to monitor these developments and take them into account when making financial decisions. A potential growth slowdown may have implications for the stock market, interest rates, and employment opportunities. Being well-informed and prepared can help navigate any potential economic downturns.
As Frances Donald highlights, the U.S. economy is at a turning point. After years of strong growth, it may be headed towards a period of deceleration. While the exact extent and duration of this slowdown remain uncertain, it is essential to be aware of the indicators and factors that contribute to the projected changes in economic growth.
Cannot do business especially exchanging USD
This is hell
<<GOOD CONTENT !!! Very engaging right from the beginning These are tough times and frankly I appreciate how you discuss global finances in such a delicate way. Business and investment are the best way to make money even under the nose off
It does not need a brilliant economist to know why US economy is heading south. With sanctions on China, main source of export has diminished. This shows the peril of a bad and ineffective leadership can bring the country down within a few years.
With markets tumbling, inflation soaring, the Fed imposing large interest-rate hike, while treasury yields are rising rapidly—which means more red ink for portfolios this quarter. How can I profit from the current volatile market, I'm still at a crossroads deciding if to liquidate my $125k bond/stocck portfolio
How many recessions have we had since 2000?
All Stores Please lower the price of all Military and Local for all brands of Economy Products and Production Cost Now That's too much $$ The Whole World Now Pray
Recession fears mount on Wall Street and inflation remains well above the Fed's 2% target, some of the top commentators in markets, business, and economics have been sounding off on just how bad they think the next downturn might be — and how far stocks may have to fall. I need ideas and advice on what investments to make to set myself up for retirement, my goal is to have a portfolio of at least $850k at the age of 60.
Americans owe $1.78 trillion in federal and private student loan debt as of the first quarter of 2023.
It’s still a recession no matter what you choose to call it.
we've been in a depression for a long time, stop lying
Market is down still, I've been looking up strategies and apparently both bull and bear market condition provides equal avenue to accrue massive gains, and a news article particularly mentioned a 54 year old that made $180k in 5weeks, how do I learn these strategies, my portfolio has been stagnant for months.
LMAO. The SP500 rallied 600 points and 3 months and she and manulife missed it. Nice try Frances.
Thanks to AI market is still holding on
I forcast that she is going to be fatter.
Thats why I pulled out my retirement of Manulife. Consistent poor performance in returns 10 years.