US Economy May Slow Down: An influential expert has urged people to be careful because stock prices and property values may fluctuate and the US economy, which has been doing well, may slow down. The economist expects the US economy to slow. This message prepared for the US economic slump. Pay attention to this warning.
StoneX Group’s smart head of global macro strategy, Vincent Deluard, has raised concerns about the world’s state. His words indicate a problem. The S&P 500 has risen 25% since October, trading at nearly 22 times earnings. This large multiple raises its price. This gain has raised its market multiple.
Deluard thinks this could make investors reassess their stock holdings, which is crucial as corporations face increasing pressure to make money. Because stock prices are falling, this is crucial. People are more afraid now that two-year and 10-year Treasury bond yields are 5% and 4%, respectively.
Deluard believes the US housing market will soon warm up. Smart homeowners with strong fixed-rate mortgages don’t want to sell because they don’t want to lose their rates. Selling a house is difficult and time-consuming. Homeowners don’t want to risk losing their mortgage rates.
Since last spring, the Federal Reserve has been progressively rising interest rates, which has raised mortgage rates, but the present shortage of inventory has kept house prices high. This has raised property prices significantly. This happened despite fewer properties on the market.
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Deluard, who understands markets, points out that even though no one wants to sell right now, life events like job changes, moves, divorces, and even untimely deaths will change the housing landscape, putting downward pressure on prices. The real estate market relies on this, even when no one is selling. The real estate market relies on home sales, even when few people are selling.
Deluard found that the US economy had recovered, despite negative expectations of a collapse. Deluard concluded this after studying. He credits the Inflation Reduction Act, CHIPS and Science Act, Social Security cost-of-living increases, and inflation-related income tax bracket modifications for this rebound. He also attributes this turnaround to less unemployed.
Deluard thinks growth will be less positive. He anticipates a slowdown in January or February. The speed would slow. According to this estimate, growth will continue to rise. He believes the Federal Reserve’s frequent rate hikes will have a long-term impact on the economy.
This emphasizes the need for caution while predicting the next several months. He said the economy will finally determine whether the Federal Reserve hikes interest rates. He also blames the European Central Bank’s consistent rate hikes for long-term economic damage. He feels this is crucial and will finally impact the economy.
Our Reader’s Queries
Is the US economy slowing down?
According to the latest “Beige Book” survey conducted by the Federal Reserve, economic activity has slowed down since the previous report. Out of the 12 districts surveyed, four reported modest growth, two indicated that conditions were flat to slightly down, and six noted slight declines in activity.
Is the economy slowing down 2023?
The current global forecast is influenced by the tightening of monetary policies by major central banks and the economic pressures in China. This is expected to result in a slowdown in global growth, which is projected to remain below average in 2023-24. Despite this, inflation is predicted to decrease but still remain above the target.
How is the US economy doing right now 2023?
While the state of the U.S. economy is a major concern for many Americans, 2023 proved to be a positive year for the macroenvironment. Spending remained strong, markets saw significant gains, and the Federal Reserve’s efforts to combat inflation showed promising signs of progress without causing a freeze.
Is the US currently in a depression?
While the economy may be slowing down and the job market cooling off, it’s important to note that we are not in a depression. This statement comes from Sung Won Sohn, a professor of finance and economics at Loyola Marymount University and the chief economist at SS Economics. Despite the challenges we may be facing, it’s important to remain optimistic and focus on finding solutions to keep our economy moving forward.