{"id":39497,"date":"2022-06-06T22:06:59","date_gmt":"2022-06-06T22:06:59","guid":{"rendered":"https:\/\/harchi90.com\/us-economy-will-slow-markedly-but-dodge-a-recession-as-fed-hikes-rates-goldman-predicts\/"},"modified":"2022-06-06T22:06:59","modified_gmt":"2022-06-06T22:06:59","slug":"us-economy-will-slow-markedly-but-dodge-a-recession-as-fed-hikes-rates-goldman-predicts","status":"publish","type":"post","link":"https:\/\/harchi90.com\/us-economy-will-slow-markedly-but-dodge-a-recession-as-fed-hikes-rates-goldman-predicts\/","title":{"rendered":"US economy will slow markedly but dodge a recession as Fed hikes rates, Goldman predicts"},"content":{"rendered":"
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Former Congressional Budget Office director Douglas Holtz-Eakin weighs in on high inflation rates and strategizes practical solutions on ‘Cavuto: Coast to Coast.’<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
Goldman Sachs economists expect the Federal Reserve to bring the US economy to a grinding halt in order to cool inflation, but believe central bank policymakers may be able to successfully pull off their aggressive rate hike plan without dragging the country into a recession.<\/p>\n
In a Monday analyst note, strategists led by Jan Hatzius said that while there are signs of the labor market cooling off, core inflation is also decelerating as pandemic-related disruptions in the economy begin to fade. <\/p>\n
HOW THE FEDERAL RESERVE MISSED THE MARK ON SURGING INFLATION<\/u><\/strong><\/p>\n
With supply chain snarls starting to ease, trillions of dollars in government stimulus quickly depleting and more workers likely to return to the labor force soon, the Fed may not have to raise interest rates as quickly as some economists feared, Hatzius wrote. Although the unexpected slowdown in first-quarter growth suggests “that near-term recession risk has increased in a mechanical sense,” the strategists said that other activity measures “imply that output is still expanding.”<\/p>\n
Although inflation remains near a 40-year high, the labor market has continued to add jobs at a brisk pace while consumers, flush with a cash surplus, have kept spending money on everyday goods. <\/p>\n