On Bloomberg Television’s “Balance of Power” on Wednesday, Mark Zandi, chief economist at Moody’s Analytics, predicted that 2023 “is going to be a pretty tough year” because we won’t “see what the Fed is doing.” the full impact of everything”. This year, “we’re going to see slower job growth, maybe some declines, and the unemployment rate is going to go up.”

Zandi said, “You just think about these big corporations, companies like Moody’s. Six or 12 months ago, everyone was hiring. Openings are at an all-time high. You just don’t turn that ship around quickly. … So I think we’re going to see — we’ve seen a bit of a slowdown in job growth, and we’re going to see a more meaningful slowdown going forward. It’s going to take some time. We’re not going to see what the Fed is doing next year The full impact of doing the work.”

He added: “It does feel like a critical moment for inflation has come. The Fed is going to do whatever it takes to push inflation and they’re going to succeed one way or another. So, I think 2023 is going to be a very tough year. Of course, we’re going to see slower job growth, maybe some declines, and unemployment is going to rise. But when people run for re-election again, probably in the spring or summer of 2024. Inflation should come down and the economy should recover.”

Follow Ian Hanchett on Twitter @IanHanchett

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