14 Nov 2023

US Recession???

We have been asking why the United States has still not gone into a recession given that the Effective Federal Funds Rate has increased from 0.08% in December 2021 to the current 5.33% that was reached in September 2023.

The answer is the US consumer.

Inflation has fallen while wages have risen and there is much more excess savings (US$816 billion remaining) than what was previously estimated.

Click for chart.

This implies that GDP (Gross Domestic Product) in the United States will continue to be positive for the next 12 months.

We will wait and then react because when recessions do occur, they always present investors with an opportunity to buy more quality assets at a discounted price.

If you have family, friends or colleagues that want financial advice please ask them to contact us and we will work out how best to help.


At Newealth we are always looking to support and promote our clients wherever possible and if you have any ideas or comments, please feel free to email me or to call me on +61 2 9267 2322.

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