Economist Gary Shilling Predicts Looming Recession Despite Hopes for Soft Landing
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Famous economist Gary Shilling believes a recession is likely despite hopes for a soft landing, pointing to impending rate hikes and a loosening labor market.
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Interest rate hikes historically lead to recessions - it's been 24 months since they started raising rates.
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The Fed wants clear signs inflation is down before cutting rates again, not reassuring markets.
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The labor market is tight with businesses reluctant to let workers go after fighting hard to hire them.
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Consumers are slowing spending after resilience, a worrying sign as consumer spending drives 70% of the U.S. economy.