Are high rates endangering the US economy?
==========

The US economy is facing challenges despite reaching new highs in the stock market. Growth rates are slowing, job creation is below expectations, and the ISM manufacturing and services indices have fallen. The number of corporate bankruptcies is increasing due to high interest rates, with June seeing a historic spike in filings. Federal Reserve chairman Jerome Powell expressed concern about keeping rates too high for too long. The likelihood of lowering rates in September is growing as the economy slows and inflation approaches the 2% target. However, the Fed remains cautious about easing policy too soon. The ratio of US growth stocks to value stocks and the share of the technology sector in the S&P 500 have reached their highest points since the Dotcom bubble, leading to predictions of a significant drop in the stock market. The US economic calendar is busy, with the new earnings season starting and reports from big banks expected. The article advises monitoring macroeconomic data and warns that bad economic news in the US is currently benefiting bonds, stocks, and gold, but takes the economy further away from a soft landing.

#UsEconomy #InterestRates #StockMarket #CorporateBankruptcies #FederalReserve #Inflation #S&p500 #EarningsSeason

https://www.forexlive.com/Education/are-high-rates-endangering-the-us-economy-20240712/