The U.S economy recorded two successive quarters of economic contraction, meeting the traditional definition of a recession. While the market continues to provide mixed signals, Steve Hanke, professor of applied economics at Johns Hopkins University, believes that the United States is headed for a “whopper” of a recession in 2023. While Stephen Roach of Yale University agrees it will take a “miracle” for the U.S. to avoid a recession next year.
Moreover, the Fed is expected to continue with its rate hikes to tame the high inflation. While consumers generally reduce discretionary spending during recessions, the consumer defensive sector typically sees stable demand for its products.
