TechFlow news, October 20 — According to Jinshi Data, SocGen strategist Kit Juckes said the U.S. economy faces a risk of slipping into a mild recession, which could trigger deeper rate cuts and weaken the dollar. He noted that slowing growth combined with stretched valuations in U.S. stocks may echo the mild recession scenario of 2001. Looking back, the Federal Reserve slashed interest rates from 6.5% to 1.0% between 2001 and 2003, while the dollar index plunged 40% over the following seven years. Juckes warned: “If concerns over inflation, economic growth, asset valuations, and market bubbles eventually tip the scales and push the economy into (still moderate) recession, both rate and dollar declines could exceed our expectations.”
Add to Favorites
Share to Social Media
