KC Fed Labor Market Index update for April #MacroEdge
Labor and cuts are next in the saga. Job market is cooked like gumbo before an LSU football game. pic.twitter.com/N1WXe75cb3
— Don Johnson (@DonMiami3) May 10, 2024
Red X marks March 2001 and December 2007 – start of the two previous NBER indicated downturns pic.twitter.com/Oc7A41pfN5
— Don Johnson (@DonMiami3) May 10, 2024
The Fed and Treasury paying each other, every last billion straight out of your pocket 🤗 t.co/vj8JNCQ1pN
— Peter St Onge, Ph.D. (@profstonge) May 10, 2024
US debt has increased by $1.1 trillion (!) through the first 219 days of Fiscal Year 2024. That's $5.02 billion per day every day including weekends and would annualize to $1.838 trillion (!) of new debt for FY 2024. t.co/T1CiDn2Dac
— David Sommers (@dgsommersmkts) May 9, 2024
Pandemic Savings Depleted: Economic Uncertainty Looms as American Debt Rises
During the pandemic, Americans saved an impressive $2.1 trillion, fueling sustained consumer spending and economic resilience amidst rising interest rates and persistent inflation. However, recent reports from San Francisco Federal Reserve economists Hamza Abdelrahman and Luiz Edgard Oliveira indicate that these pandemic-era savings are now depleted, with many Americans having more debt than savings as of March 2024. This shift from savings to debt raises concerns about the future of consumer spending, which is a key driver of the U.S. economy. With the depletion of excess savings and an increase in consumer debt and delinquencies, there are growing worries about potential economic downturns.
Potential 2025 Recession Could Plunge Stock Market by 30%, Experts Warn
BCA strategist Roukaya Ibrahim predicts that a recession by early 2025, influenced by continued unemployment and economic difficulties in China, could lead to a 30% decline in the stock market. This view is echoed by Wall Street veteran Gary Shilling, who shared similar concerns with Business Insider. Ibrahim identifies two key factors that signal an impending recession by the end of this year or early next, potentially triggering a significant market correction.