Recession Fears Return: Investment Banks Raise Recession Risk Forecasts
Is the US Economy Headed for a Downturn?
Two major investment banks, Citigroup and Goldman Sachs, have recently increased their predictions for the likelihood of an impending US recession. This shift in sentiment comes despite the US economy experiencing solid growth in the final quarter of 2023.
Factors Contributing to Recession Concerns
Several factors have led to renewed fears of a recession, including:
- A rise in the unemployment rate to 4.3% from 4.1% in July.
- An increase in unemployment benefit filings.
Official Stance on Recession
Despite these concerns, the United States is not currently in a recession, as defined by two consecutive quarters of declining economic growth. However, Federal Reserve Bank of Minneapolis President Neel Kashkari has expressed concern, stating that the recent turmoil in the economy "definitely could be a sign that we're headed for a recession."
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