As 2024 comes upon investors faster with every day, experts are now believing the Fed may reach its inflation mandates and promote GDP growth in the new year with a recession.
Yardeni Research President Ed Yardeni explains the economy has been more resilient than even he expected, reconsidering his past recession calls.
“It’s almost contrary to agree with the Fed, and I’ve been a contrarian saying the Fed may actually get it right. Inflation may come down and they may get it without a recession,” Yardeni tells Yahoo Finance.
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The United States Federal Reserve has been closely monitoring the economy and has been making moves to ensure that its goals are met without the need for a recession. This is the assessment of one prominent strategist, who believes that the central bank may be able to achieve its objectives through careful planning and strategic decision-making.

Many experts and economists have been concerned about the possibility of a recession in the near future, especially as the global economy faces a number of challenges such as trade tensions and slowing growth. However, Karyn Cavanaugh, Senior Market Strategist at Voya Investment Management, believes that the Federal Reserve has the potential to steer the economy in the right direction without the need for a recession.

Cavanaugh points to the recent interest rate cut by the Fed as a positive move that could help to bolster the economy. The central bank cut interest rates by 0.25 percentage points in July, marking the first such move in more than a decade. This decision was made in response to concerns about global economic growth and trade tensions, and it is seen as a proactive step to support the economy.

In addition to the interest rate cut, the Federal Reserve has also been taking other measures to support the economy. Cavanaugh notes that the central bank has been carefully managing its balance sheet and has been providing liquidity to the financial system as needed. These actions have helped to stabilize the financial markets and support economic growth.

Cavanaugh also points to the positive signs in the US economy, such as the strong labor market and healthy consumer spending. These factors indicate that the economy is on solid footing and has the potential to continue growing without the need for a recession.

While there are certainly risks and challenges ahead, Cavanaugh believes that the Federal Reserve is well-positioned to navigate these obstacles and achieve its goals. She emphasizes the importance of clear communication and careful decision-making by the central bank, as well as the need for ongoing monitoring and adjustment of monetary policy as needed.

Overall, Cavanaugh’s assessment is optimistic about the potential for the Federal Reserve to achieve its objectives without the need for a recession. By taking proactive and strategic measures, the central bank can help to support economic growth and stability in the months and years ahead.