Posted on 02/20/2023 11:51:33 AM PST by bitt
Fed tightening 'always breaks something,' top Bank of America economist says
The U.S. economy could be headed for a "no landing" scenario thanks to the hot labor market, but that might not be good news for the stock market, according to Bank of America analysts.
In an analyst note published Friday, Bank of America chief economist Michael Hartnett predicted a "no landing" scenario in the first half of the year, where there is no immediate slowdown in growth but inflation remains above trend. That would likely force the Fed to raise interest rates much higher than previously forecast — and keep them elevated for longer.
"No landing means no Fed pausing," Hartnett wrote, warning that central bank tightening "always breaks something." He projected the S&P 500 could tumble nearly 7% by early March as a result.
(Excerpt) Read more at foxbusiness.com ...
p
Could be. Might. Possibly.
Don’t get me wrong. These articles have value. But it must be great being an economist. You can predict pretty much anything you want. Just include a couple of those special words.
As a side note, I was trained as a chemist. I was never allowed to use those words. There was only one correct prediction. For example, cesium metal + water = boom. Always.
The last 2 years proves it to be so Biden’s squandering of cash is taking it’s grip.
His academic crew were D students they only passed just to get rid of them before the passed their stupidity on to others.
The left over Obama tribe
Lol you so right! Economists can predict wrongly again and. Again without consequences.
The real truth is no one knows where stocks will be next week much less 6 months from now.
What about vinyl chloride + O2 + initial heat?
> What about vinyl chloride + O2 + initial heat? <
I’m sorry. Norfolk Southern threatened to sue me if I answered that one.
But...but...I thought everything was wonderful, with Biden now playing Statesman and Peacemaker in Ukraine.
Who cares about stocks? They’ll come roaring back just in time for Joe’s re-coronation.
/sarc
The Plunge Protection Team will make sure nothing happens until after the election.
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