US Economy Not Heading for Recession, Says UBS Wealth Management SVP
Economy Slowing, but Not to Recessionary Levels
Despite recent high-profile layoffs, the US economy is not currently heading for a recession, according to Brenda O'Connor Juanes, SVP of UBS Wealth Management. Juanes attributes the slowing economy to the Federal Reserve's attempts to curb inflation by raising interest rates.
Concerns Over Recession Overblown
Juanes highlights the resilience of the US economy, despite genuine concerns about a potential recession. She notes that a recession is typically defined as a decline in economic activity lasting several months, which is not currently the case.
Jittery investors have overreacted to the threat of a recession, according to economists. However, they caution that the period of rapid economic growth experienced in recent years has come to an end.
The current economic slowdown represents a period of adjustment, rather than a full-blown recession. Juanes refers to this as "the would-be recession that we are not having at the moment."
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