Peter Cecchini, Axonic director of research and Ed Clissold, Ned Davis Research chief U.S. strategist, joins ‘Closing Bell Overtime’ to talk the day’s market action and their 2024 outlook….(read more)

BREAKING: Recession News

LEARN MORE ABOUT: Bank Failures

REVEALED: Best Investment During Inflation

HOW TO INVEST IN GOLD: Gold IRA Investing

The global economy has been facing significant challenges in recent months, with fears of a potential recession looming large. However, Ned Davis’ Ed Clissold believes that while the threat of a recession is still present, the recent change in rhetoric from the Federal Reserve is a positive sign for the future.

The Federal Reserve, the central bank of the United States, plays a crucial role in shaping the country’s monetary policy and influencing economic trends. In recent years, the Fed has been gradually increasing interest rates in order to prevent the economy from overheating and to stave off inflation. However, the tone from the Fed has shifted in recent months, with Chairman Jerome Powell indicating a willingness to be more flexible with interest rate hikes in response to changing economic conditions.

This change in rhetoric from the Fed is seen as a positive development by Ed Clissold, the Chief U.S. Strategist at Ned Davis Research. Clissold believes that the Fed’s more dovish stance has eased some of the concerns about a potential recession, and could potentially support a more sustainable economic expansion in the long run.

While the threat of a recession is still present, Clissold sees several reasons for cautious optimism. He points to the strength of the U.S. consumer, who continues to benefit from a robust job market and rising wages. Additionally, corporate earnings remain solid, and the recent volatility in the stock market has created attractive opportunities for investors.

Clissold’s analysis is in line with the views of many economists and market analysts who believe that the current economic expansion still has room to run. While there are certainly risks on the horizon, such as the ongoing trade tensions between the U.S. and China, Clissold’s optimism is a reflection of the underlying strength of the U.S. economy.

It’s important to note that Clissold’s positive outlook does not discount the potential for a recession in the future. Economic cycles are a natural part of the business cycle, and it’s inevitable that the economy will face periods of slowdown and contraction. However, the recent change in rhetoric from the Fed is a signal that policymakers are attuned to the changing economic environment and are willing to adjust their policies accordingly.

In conclusion, while the threat of a recession is still on the table, the change in rhetoric from the Federal Reserve is a positive sign for the economy. Ed Clissold’s cautious optimism is grounded in the underlying strength of the U.S. economy, and the potential for a more sustainable economic expansion in the future. As always, it’s important for investors and policymakers to remain vigilant and flexible in the face of changing economic conditions.