(TargetLiberty.org) – A new research note by the Bank of America indicates that the bank’s economists think that the U.S. economy is not going to enter a recession but that instead, they are going to experience a “soft landing.” Previously they had anticipated a mild recession to hit in the first half of 2024.
The research note now shows that rather than recession what economists are forecasting is that economic growth is going to turn below its current levels but that it won’t reach negative levels. As it is stated they are expecting that the economy is going to manage to avoid a mild recession. However, that does not mean that there are no reasons for worrying as they still believe that a mild recession is the “second most likely outcome.”
The new revision was released after last week Jerome Powell, the Federal Reserve Chair, announced that the central bank no longer was forecasting that the country would enter a recession. As he had noted the bank’s staff had seen a slowdown in growth, but that the resilience of the economy in the past few months is leading them to believe that there won’t be a recession.
He had added that right now there was a way for them to have a “soft landing” rather than a recession.
The data from the second quarter of 2023 was better than anticipated as gross domestic product (GDP) grew by 2.4 percent, which is higher than the 1.8 percent that economists had expected. There has also been a decrease in the inflation rate which is as of June at 3 percent.
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