The U.S. economy could experience a “mild” recession next year even as the Federal Reserve is seen as increasingly likely to lower interest rates to boost growth, predicted a European investor.
The Fed on Wednesday kept benchmark rates in the U.S. unchanged. But Fed Chair Jerome Powell opened the door to a possible rate cut by saying that some central bank officials “now see the case for somewhat more accommodative policy has strengthened. ”
U.S. stocks rallied as investors bet on the Fed easing monetary policy, which would extend the ongoing economic expansion. But Guy Miller, chief market strategist and head of macroeconomics at Zurich Insurance, cautioned on Friday that economic conditions could take a turn for the worse.
