Goldman Sachs reduced odds of a recession in the US from 20% to 15% as analysts at the Wall Street investment bank cite lower inflation, job market.
Goldman Sachs has reduced the odds of a recession in the US from 20% to 15% as analysts at the Wall Street investment bank cite lower rates of inflation and a stubbornly resilient job market that make it more likely the Federal Reserve won’t raise interest rates any further.
While inflation has cooled, American families continue to be squeezed by the rate of price increases, which have exacerbated credit card and car loan defaults.
A recent survey also found that some 61% of Americans said they were living paycheck to paycheck.
While the Consumer Price Index has cooled somewhat, the Federal Reserve’s preferred measure, the Personal Consumption Expenditures price index, rose 3.3% over one year earlier in July, up from June’s 3%.
Goldman Sachs Chief Economist Jan Hatzius predicted that “real disposable income looks set to reaccelerate in 2024 on the back of continue solid job growth and rising real wages.
