Home World Banking CEOs warn of financial uncertainty: Is a US recession on the horizon?

Banking CEOs warn of financial uncertainty: Is a US recession on the horizon?

Banking CEOs warn of financial uncertainty: Is a US recession on the horizon?

[ad_1]

Wall Street is buzzing with considerations as high banking executives, together with Jamie Dimon of JPMorgan, Brian Moynihan of Bank of America, and Jane Fraser of Citigroup, testify earlier than the U.S. Senate Banking Committee. Experts predict a possible recession, given the challenges going through the U.S. financial system.

FILE PHOTO: A street sign for Wall Street hangs in front of the New York Stock Exchange May 8, 2013. REUTERS/Lucas Jackson/File Photo(REUTERS)
FILE PHOTO: A road signal for Wall Street hangs in entrance of the New York Stock Exchange May 8, 2013. REUTERS/Lucas Jackson/File Photo(REUTERS)

Soaring inflation has plagued the nation, reducing from 9 % in June 2022 to three.2 % in October 2023 however nonetheless exceeding the Fed’s 2 % goal. To fight this, the Federal Reserve has raised rates of interest 11 instances since March 2022, reaching 5.5 %. The repercussions embrace elevated borrowing prices for housing, vehicles, and enterprise investments, sparking considerations a couple of looming recession.

Stay tuned with breaking news on HT Channel on Facebook. Join Now

Jane Fraser, Citigroup’s CEO, expressed her apprehension a couple of potential recession attributable to elements like inflation, rising debt ranges, and ongoing geopolitical conflicts. While acknowledging a confluence of challenges, she doesn’t foresee a drastic downturn.

Jamie Dimon echoed considerations, emphasizing that rising inflation and rates of interest could possibly be recessionary indicators. He cautioned, “Be prepared. Interest rates may go up, and that might lead to a recession.”

Despite these warnings, Bank of America’s Global Research suggests a special perspective. Their report anticipates a gentle touchdown in 2024, that means inflation could average with out extreme harm to the labor market. The report foresees a slowing inflation fee, permitting the Fed to chop charges by 0.25 % per quarter in 2024.

Also Read | BBC anchor goes viral for the most absurd reason

While some predict a milder recession, a survey by the Financial Times suggests the Fed won’t minimize rates of interest till July 2024. The November Consumer Confidence Survey signifies a decline in recession expectations for 2023, though two-thirds of respondents anticipate a slowdown within the coming 12 months.

Despite these assorted outlooks, IMF projections counsel 2.1 % development for the 12 months, with GDP rising at an annual fee of two.1 % in Q2 2023 and 5.2 % in Q3, including complexity to the financial forecast. The query stays: is the U.S. heading for a recession, or can it navigate by way of uncertainties for a softer financial touchdown?

[ad_2]

Content Source: www.hindustantimes.com

LEAVE A REPLY

Please enter your comment!
Please enter your name here