Equity investors appear to be spooked by concerns that the US could be facing a recession. Despite rising inflation and Fed rate hikes, ING's Chief International Economist, James Knightley, is far more upbeat.
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Why inflation-led recession worries in the States are overdone
The US Federal Reserve is actively slamming on the breaks as inflation hits 8% and unemployment falls below 4%. Might recession be looming in America? After all, the economy contracted in the first quarter. We don't think so. In fact, data shows that growth is rebounding strongly. ING's James Knightley in New York is looking for an annualised rate of 3%-plus this quarter.
Disclaimer: This publication has been prepared by the Economic and Financial Analysis Division of ING Bank N.V. (“ING”) solely for information purposes without regard to any ...
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