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US Economic Outlook: Economy will bend not break under higher rates

The US economy will bend rather than break under the pressure of a rapid monetary tightening by the Fed, according to our Q2 US Economic Outlook. Our latest US economy predictions explain how, having abandoned the idea that inflation is transitory, the Fed is now on an aggressive monetary tightening path – with implications for the 2022 growth outlook. The report’s highlights key issues, including:

  • Why a series of 50bps rate hikes will give way to more moderate tightening in the second half as signs of economic weakness feed through;
  • The forces which lead to a sharp fall in inflation this year;
  • Why we think the US economy will likely avoid a recession.

Download the latest complimentary copy of this report to prepare for turning points in the US economy and market shifts.