Economic news

Fitch says Fed rate policy, inflation to weigh on U.S. consumer health in 2023

2022.10.18 16:07



© Reuters. FILE PHOTO: The Fitch Ratings logo is seen at their offices at Canary Wharf financial district in London,Britain, March 3, 2016. REUTERS/Reinhard Krause

(Reuters) -Ratings agency Fitch on Tuesday said it expects a strong labor market and consumer demand to cushion the impact of a likely recession in the United States in 2023.

The ratings agency said that consumer spending will drive a modest expansion in real GDP for the United States in the second half of 2022, at around 0.3% per quarter.

But a slowdown in job growth, rising unemployment, aggressive interest rate policy and higher inflation is likely to take a toll on consumer spending in 2023, Fitch said.

U.S consumer prices rose more than expected in September and underlying inflation pressures continued to build, reinforcing expectations that the Federal Reserve will deliver a fourth 75-basis points interest rate hike next month.

Despite the continued moderation as supply chains ease and oil prices retreat from the highs seen in the spring, inflation is running way above the Fed’s 2% target.

CNN first reported Fitch’s growth forecasts for the United States this year and next.



Source link

Related Articles

Leave a Reply

Back to top button
bitcoin
Bitcoin (BTC) $ 98,311.34 0.05%
ethereum
Ethereum (ETH) $ 3,389.24 0.82%
tether
Tether (USDT) $ 1.00 0.06%
solana
Solana (SOL) $ 253.83 0.58%
bnb
BNB (BNB) $ 662.00 0.24%
xrp
XRP (XRP) $ 1.46 0.30%
dogecoin
Dogecoin (DOGE) $ 0.425817 2.00%
usd-coin
USDC (USDC) $ 1.00 0.08%
cardano
Cardano (ADA) $ 1.05 1.29%
staked-ether
Lido Staked Ether (STETH) $ 3,390.57 0.75%
tron
TRON (TRX) $ 0.209522 2.61%
avalanche-2
Avalanche (AVAX) $ 42.12 1.50%
stellar
Stellar (XLM) $ 0.527503 6.94%
the-open-network
Toncoin (TON) $ 6.12 6.88%
shiba-inu
Shiba Inu (SHIB) $ 0.000026 4.27%
wrapped-steth
Wrapped stETH (WSTETH) $ 4,005.57 1.06%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 97,883.23 0.19%
polkadot
Polkadot (DOT) $ 9.13 1.29%
chainlink
Chainlink (LINK) $ 18.19 2.63%
bitcoin-cash
Bitcoin Cash (BCH) $ 513.45 0.33%
weth
WETH (WETH) $ 3,383.75 0.91%
sui
Sui (SUI) $ 3.44 0.66%
near
NEAR Protocol (NEAR) $ 7.01 3.88%
pepe
Pepe (PEPE) $ 0.00002 2.67%
leo-token
LEO Token (LEO) $ 8.66 0.22%
litecoin
Litecoin (LTC) $ 96.91 3.81%
aptos
Aptos (APT) $ 12.39 4.28%
uniswap
Uniswap (UNI) $ 11.00 0.55%
wrapped-eeth
Wrapped eETH (WEETH) $ 3,566.14 0.86%
hedera-hashgraph
Hedera (HBAR) $ 0.143703 3.89%
internet-computer
Internet Computer (ICP) $ 11.50 1.29%
usds
USDS (USDS) $ 1.00 0.13%
crypto-com-chain
Cronos (CRO) $ 0.187704 5.50%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.565332 2.24%
ethereum-classic
Ethereum Classic (ETC) $ 29.06 2.89%
render-token
Render (RENDER) $ 8.01 0.13%
bittensor
Bittensor (TAO) $ 535.95 0.68%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.51 1.34%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.07%
kaspa
Kaspa (KAS) $ 0.153285 0.11%
whitebit
WhiteBIT Coin (WBT) $ 24.45 1.19%
bonk
Bonk (BONK) $ 0.000047 1.50%
arbitrum
Arbitrum (ARB) $ 0.8569 2.99%
vechain
VeChain (VET) $ 0.043294 1.21%
dai
Dai (DAI) $ 1.00 0.04%
filecoin
Filecoin (FIL) $ 5.62 4.58%
blockstack
Stacks (STX) $ 2.26 6.83%
cosmos
Cosmos Hub (ATOM) $ 8.67 5.61%
okb
OKB (OKB) $ 56.18 4.03%
mantra-dao
MANTRA (OM) $ 3.69 0.47%