Federal Reserve Bank of America As the (Fed) prepares to announce its interest rate decision today, the economic world and financial markets are closely following this important event. According to CME Group’s FedWatch data, the expectation of the markets is that interest rates will be kept constant in the current level of 5.25-5.50. The main reason for this expectation stands out as the concern that the economy may enter a recession if the Fed takes further steps to increase interest rates.
However, a striking report from Bank of America argues that the likelihood of a recession in the USA has decreased at a time when investors are fearful of recession. Alastair Borthwick, Bank of America’s chief financial officer, emphasizes that US consumers are in a solid position, reducing the risk of an economic slowdown.
“Considering that US consumers are increasing their spending by 4% annually, it becomes very difficult to see the possibility of a recession in the country,” Borthwick said at a conference. “We are still seeing increases in consumers’ purchasing power,” he says.