The US economy remains in good health, or at least far better health than forecast when the Fed started raising rates. Here are two reasons why a downturn has (so far) failed to materialize. Presented by @cmegroup:
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Despite facing economic challenges, the United States has managed to avoid slipping into a recession in recent years. There are several factors contributing to this resilience, but two key reasons stand out.
The first reason why the US is avoiding a recession is the strength of its consumer spending. Consumer spending accounts for roughly 70% of the US economy, making it a crucial driver of growth. In recent years, American consumers have continued to spend at a consistent and robust pace, buoyed by factors such as low unemployment, rising wages, and a strong housing market. This has helped to offset weaknesses in other areas of the economy, such as manufacturing and business investment.
Another important factor that has helped to stave off a recession is the Federal Reserve’s monetary policy. The Federal Reserve, the country’s central bank, has played a key role in supporting the economy through its management of interest rates and its implementation of various monetary policies. In response to signs of economic slowdown, the Federal Reserve has taken proactive measures to lower interest rates and provide stimulus to the economy. This has helped to encourage borrowing and investment, providing a much-needed boost to the economy at a time when it has faced headwinds from global trade tensions and other uncertainties.
While these factors have lent considerable support to the US economy, it is important to note that there are still risks and challenges that could potentially lead to a recession in the future. These include ongoing trade tensions, geopolitical uncertainties, and the potential for a slowdown in global economic activity. As such, policymakers and businesses will need to remain vigilant and proactive in addressing these risks to ensure that the US economy continues to thrive.
In conclusion, the US has managed to avoid a recession in large part due to the strength of consumer spending and the supportive actions of the Federal Reserve. While these factors have helped to keep the economy on a steady path, it will be important for the country to continue to address potential risks and challenges in order to sustain its economic momentum.
Okkkkk
SSI were increased, food stamps too! bussines still got covid benefits, some utilities were pardoned thanks to uncle Sam, lot of more government jobs were created, money from the air made out of cotton were created and give it to the banks at request of millionaires asking for more money.
Only the USA and some few other countries have the power to do all this and much more!
Really? Are people in A,Erica believing your optimistic data? Wake up people. Please do not believe this. Prepare yourselves please
unemployment is literally the last thing to drop. Looking at unemployment at 3.6% and saying recession isn't a thing anymore is quite simply overlooking this fact
The US avoided recession thanks to the infrastructure stimulus package. That's the primary reason.
Correct, we'll see it around 2025 to 2026.
in your dream
some people will tell you the us entered a depression the literal second biden came into office
It only takes another republican to come into power and start printing money again to have a real recession this time…