đ¨Is a Silent Recession Coming? The Fed Urges Caution Amid Mixed Economic Signals
Jerome Powell, Chair of the Federal Reserve, is warning about rising risks to jobs and inflation. While some economic indicators in the U.S. remain strong, red flags are becoming harder to ignore.
Key Takeaways from Powell's Message:
Interest rates remain between 4.25% and 4.50%
Inflation is still above 2%, even after easing slightly
Uncertainty persists around the effects of new tariff and fiscal policies under the Trump administration
Imports are expected to drop in Q2, which may shift GDP dynamics
Public debt is on a potentially unsustainable path, Powell admits
What Does This Mean?
The Fed isnât ruling out a slowdown. While Powell avoided the word ârecession,â his call to âwait for more clarityâ shows a defensive stance. Markets fear a policy misstep could stall growth.
Conclusion:
We may be entering a phase of weak growth and high uncertainty â a mix that has often preceded technical recessions in the past.
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ALERTS:
â ď¸ Economic Uncertainty
â ď¸ Elevated Inflation
â ď¸ Risk of Policy Missteps
â ď¸ Debt Concerns Rising