Taking excerpts from the JP Morgan Asset Management 2024 economic outlook and market analysis, news agency ANI highlighted that “The overarching theme suggests a shift towards a soft landing rather than a recession, supported by falling US inflation and prospects for a more accommodative Federal Reserve policy,
As per ANI, JP Morgan Asset Management’s Chief Investment Officer, Michael Cembalest, has shared insights into the 2024 economic landscape and market trends.
The rising interest rates during 2023 in order to fight high inflation however had raised concerns on global slowdown and increased chances of the US slipping into Recession, which had remained major concern of the market participants.
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Leading indicators are signaling weaker US growth, but Cembalest has emphasized that these indicators point to a slowdown rather than a sharp decline, suggested the ANI feed. While there’s talk of a potential recession in 2024, Cembalest notes that even if it occurs, it is likely to be mild, thanks in part to the Federal Reserve providing ample liquidity to the banking system.
Despite an increase in Fed policy rates, ANI highlighted that Cembalest explains the risk of a recession has been mitigated by factors such as the corporate sector’s solid cash flow, the terming out of debt maturities, and ongoing liquidity support from the Fed.
He cautions, however, that recessions typically occur several quarters after the initial Fed hike.
Turning to inflation, Cembalest acknowledges the success in curbing inflation in the US and other developed economies.
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Factors contributing to this include falling supply chain pressures, rising auto inventories, and declining used vehicle values.
The report as per ANI delves into antitrust risks facing US tech stocks and includes a detailed analysis of weight loss drugs, the US Federal debt, China, and the top ten surprises for 2024.
The outlook also considers the potential impact of new US energy and industrial policies on inflation risks.
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Published: 02 Jan 2024, 05:28 PM IST