Moody’s chief economist, Mark Zandi, said he had not seen many people convinced that a recession was imminent, as they are now despite his long history as an economist in the markets for more than 3 decades.
Zandi sees, that while US economy Can he still avoid such an economic downturn, sentiment is so weak that it poses its own risk – a kind of recession prophecy that will come true on its own.
Zandi cut his forecast for US gross domestic product for this year and next to 1% and 2%, respectively, from previous forecasts of 2% and 2.5%, respectively.
Despite his optimism that the economy is still far from the danger of a recession, the tide of pessimism is at an all-time high, according to Zandi, who said in the “What’s Goes up?” podcast: “I talk to CEOs, CFOs, investors, friends and family — everyone thinks we’re It’s stagnating. I’ve never seen anything like this before.” “I’ve seen so many business cycles, and I’ve never seen so much stagnation consensus in my life. So when sentiment is so fragile, it doesn’t take much to drive us into danger.” “I think that with a little luck, and some reasonably good policy making by the Federal Reserve, we will be able to avoid a recession,” according to what Al Arabiya.net has seen.
Zand gave a set of reasons for his optimism, which is that inflation rates will automatically decline, especially since oil prices actually fluctuate, while natural gas prices are witnessing a decline. He believes that car prices will also decline, as supply chain problems are resolved and more cars are produced. Commodity prices fell more broadly.
He reinforced his view that for the typical American family, according to his calculations, as of June they had excess savings of between $7,000 and $8,000 per family. So if the current price hike means paying an extra $500 a month for higher inflation and I have those savings, I have very little time, and I can use that extra savings to supplement my income, to offset the ill effects of higher inflation.
