Categories: USA

Fears of a U.S. recession over?

Halloween may be scary but the U.S. economy looks less scary around the festive period. U.S. and China are on the talking table, the economic indicators are looking solid. The stock market is soaring while corporate earnings are off the roof. The bond market is also showing positive signs which were not expected.

These signs are wearing out the calls that America could face recession as of next year. Even the top Wall Street Firms are telling clients that the chance of a recession is modest. Goldman Sachs puts the risk level at 24 percent. Barclays says less than 10 percent. Morgan Stanley says “around 20” percent. Jan Hatzius, Goldman’s chief economist wrote in a note that “Our view [is] that the risk of recession remains moderate.”

Everyone including the Federal Reserve officials is saying that the recession has subsided. Tom Barkin, president of the Federal Reserve Bank of Richmond said that “How likely is it that there’s a recession on the horizon? … I don’t see one being imminent, unless we talk ourselves into one.” Barkin pointed out that optimistic news from U.S.-China trade talks and Brexit is indicating no chance of a recession.

The economy is cooling down and stabilizing. Barkin, along with many others were worried in August that something worse is going to happen especially including which includes Maryland, the District of Columbia, North Carolina, South Carolina, Virginia and most of West Virginia.

Barkin said, “I do believe the news has gotten better. I wouldn’t go as far as to say we’ve gotten to ‘good.’” Barkin is a man of experience as he spent three decades at consulting firm McKinsey, rising to be the chief financial officer of the company before becoming Richmond Fed president last year

Shawn Genzone

Senior writer at the Chicago Morning Star

Recent Posts

Senate Democrats mock Biden for selling weapons to Israel

Some of President Biden's strongest Senate allies are calling on Israelis to end months of fierce fighting and criticizing the…

11 months ago

The biggest cities in Ukraine are struck by Russian missiles, leaving at least 4 dead and over 100 injured

Ukraine's KYIV — At least four people were killed and nearly 100 injured when Russian hypersonic ballistic missiles attacked Ukraine's…

11 months ago

Good News That’s Much Needed for Biden

The economy is making Americans feel a little more upbeat, especially when it comes to jobs and incomes, which could…

12 months ago

College Ventilation System Reveals Missing Man

The discovery of a decaying body inside a college ventilation system marked the tragic and unexplained end to a missing…

12 months ago

Following three Palestinian shots, a Vermont man was arrested

Following the shooting deaths of three 20-year-old Palestinian-American students in Vermont, authorities have detained a man. According to a news…

12 months ago

China is told to cease “COVID deception” due to the pneumonia outbreak by the US envoy

The United States ambassador to Japan, Rahm Emanuel, urged Chinese authorities "to abandon COVID deception" and demanded that China be…

12 months ago

This website uses cookies.