Fed No Longer Forecasting a Recession

[brooklynite]

Source: Political Wire

Federal Reserve Chairman Jerome Powell said the Fed’s staff is no longer predicting near-term U.S. recession, Axios reports.

Said Powell: “Given the resilience of the economy recently, they are no longer forecasting a recession.”

Read more: https://politicalwire.com/2023/07/26/fed-no-longer-forecasting-a-recession/

[efhmc]

1. Then WHY are they still raising interest rates?

[brooklynite]

3. Interest rates don't control recessions, they control inflation./

[unblock]

8. Well, both.

Higher interest rates dampen inflation while increasing risk of recession.

A more optimistic gdp forecast actually gives the fed a freer hand to increase interest rates to combat inflation as it suggests the economy can withstand further hikes without going into recession.

[cstanleytech]

16. Flip side is higher interest rates hurt the average consumer more as it

makes it difficult for people to afford things like loans for houses and car's.

[IronLionZion]

10. To deliberately slow the economy

by making it more expensive to borrow. That is supposed to discourage buying and encourage savings.

[zipplewrath]

2. But you can bet

All of those republicans that were predicting the "inevitable" recession won't mention this at all.

[Alexander Of Assyria]

6. The business media will, but they will all complain about it, somehow, to cast a negative ...

Feds No Recession Revision Stokes Fear of Inflation!

So easy to do, and some get paid to do it!

[multigraincracker]

4. Lots of fear about Climate Change.

Might bring the whole thing down.

Might be a great time to sell.

[Alexander Of Assyria]

5. Bidenomics is on a roll!

[bucolic_frolic]

7. I don't believe it but I'll ponder it as a possible outcome

So we were going to have recession with inflation - stagflation.

Now we're going to have light growth with disinflation.

So Joe talked down inflation with policy adjustments, and energy prices are benefiting from alternative energy production, and the economy grows because of gigs and side hustles along with regular jobs.

Republicans had no hand in this.

[cstanleytech]

17. Oh they had a hand.......... in trashing the American dream for millions of Americans for the past

50+ years.

[IronLionZion]

9. Republicans in extreme disappointment

[louis-t]

11. The right wing nut jobs I am forced to endure

all claimed the economy "is going to collapse", "We're already in a recession", "Real Estate market will collapse in June". None of it happened. I have a working theory about who is promoting this crap. The richest people in the country have learned that they can buy up Real Estate at 25 cents on the dollar if they can make the economy collapse. Someone is trying to convince people that banks are collapsing and everyone should take their money out now. Which would cause banks to collapse, and they could blame Biden.

[SleeplessinSoCal]

15. But it's also true banks own so much real estate...

...that they want the housing market to remain stable.

[Johnny2X2X]

12. Cancel culture strikes again!

Joe Biden cancelled the recession.

[pansypoo53219]

13. i am finally reading inside the temple. 80's boof on the fed by grieder. its like reading a 80's

repeat w/ high inflation. there was no recession then either until later. nor i am at the start of the new deal + marriner somebody from utah.

[roamer65]

14. Let's see where a 5.5 pct Fed funds rate and $90B a month of quantitative tightening take us.

[Xolodno]

18. Uhm...this doesn't smell right.

You can't predict a recession. And often, the Fed does not acknowledge we are in recession until its plainly obvious. And what is "near term"? This year? Next quarter? Plus economic indicators often lag, so you could see an outlier and dismiss it, only to find out, it was a start to a new trend.