Amid the Fed’s aggressive rate hikes to battle the sky-high inflation, economists and leaders sparked recessionary warnings. However, the past month has brought with it encouraging inflation data that shows cooling down price pressures, raising hopes that this would prompt the Fed to slow the pace of its rate hikes.
Goldman Sachs Research recently published that the U.S. is forecasted to narrowly avoid a recession as inflation fades and unemployment nudges up slightly. Their economists say there’s a 35% probability of the U.S. tipping into recession over the next year, an estimate well below the median of 65% among forecasters in a Wall Street Journal survey.
