The US economy is on the brink of a recession, and according to Macquarie’s top economist David Doyle, it could be more severe than what the Federal Reserve has predicted. In an interview with Insider, Doyle warned investors not to expect any sort of rescue from the Fed when this happens.
Doyle believes that while there are some signs of economic recovery in certain sectors, such as housing and employment numbers, these may not last long enough for a full rebound before another downturn hits. He also noted that consumer confidence remains low due to ongoing uncertainty about future job security and wages which will likely lead to decreased spending in other areas like travel or entertainment.
In addition, he cautioned against relying too heavily on government stimulus packages since they can only do so much when it comes to boosting an economy out of a recessionary period. Instead, he suggested focusing on fiscal policies, such as tax cuts or infrastructure investments, which can help stimulate growth over time rather than just providing temporary relief during times of crisis. Ultimately though, no one knows exactly how bad things will get if we enter into another recession but all signs point towards caution being taken by investors until then.
Read more at Markets Insider
