The likelihood of a recession in the US is declining.
Goldman Sachs sees a decline in the likelihood of a recession in the US over the next year from 25% to 20% thanks to encouraging economic data: improving consumer sentiment and slowing inflation, writes Business Insider.
The bank expects only one and the last rate hike by the Fed and is quite optimistic about a "soft landing" for the US economy.
The Fed's sharp rate hike for more than a year has raised fears of a "hard landing" as the economy slumps as it fights to bring inflation down to its 2% target. However, according to the latest data, consumer inflation in the US has already reached 3%, down from 9% a year ago.
At the same time, fundamental signals point to further disinflation: “Used car prices are falling on the back of rising car production and inventories, and rent inflation still has a long way to go before it catches up with the median asking rent, while the labor market continues to recover from continuing downward trend in vacancies, layoffs, labor shortages and rising nominal wages.”
