Economists, investors and the Federal Reserve have sounded alarm bells for months that a recession could come later this year. But a growing chorus of experts believe a downturn might not happen until early next year. | Analysis
Here are some of those recent calls: Delaying recession predictions isn’t anything new. Investors and economists last year predicted that the US could enter a recession in early 2023, after the Fed set out on its aggressive interest rate hiking campaign to tame inflation. As the economy proved more resilient than expected, and the US has avoided recession so far, the case for a 2023 recession has been crumbling. Bets have accordingly started to move further out.
That’s another sign that Wall Street is starting to feel better about the economy, because it suggests investors are taking cash from classically safe money market funds and starting to put it to work in the stock market, says Brian Mulberry, client portfolio manager at Zacks Investment Management.
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