{"id":547536,"date":"2022-06-26T03:16:04","date_gmt":"2022-06-26T03:16:04","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2022\/06\/26\/the-imf-says-the-us-wll-narrowly-avoid-recession-us-stocks-had-a-good-week-for-once\/"},"modified":"2022-06-26T03:16:04","modified_gmt":"2022-06-26T03:16:04","slug":"the-imf-says-the-us-wll-narrowly-avoid-recession-us-stocks-had-a-good-week-for-once","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2022\/06\/26\/the-imf-says-the-us-wll-narrowly-avoid-recession-us-stocks-had-a-good-week-for-once\/","title":{"rendered":"The IMF says the US wll \u201cnarrowly avoid\u201d recession + US stocks had a good week for once"},"content":{"rendered":"

<\/a> Not predicting a recession in the US this year or next: The IMF, <\/strong>which said in a s<\/a>tatement<\/a> Friday that it expects the US to \u201cnarrowly avoid\u201d going into recession before 2023, as curbs to inflation help protect real income and sustain growth over the medium term. Economists and analysts have been<\/a> falling over themselves to forecast a recession, with somepredicting a 50% chance<\/a> of a downturn in the US this year or the next.<\/p>\n

The lender expects the Fed\u2019s tightening to work:<\/strong> The US Federal Reserve\u2019s hawkish cycle will result in an \u201cupfront tightening of financial conditions which will quickly bring inflation back to target,\u201d IMF Managing Director Kristalina Georgieva told reporters, according to Bloomberg<\/a>,<\/p>\n

That doesn\u2019t mean it\u2019ll be plain sailing:<\/strong> The IMF slashed its growth forecast for the US this year to 2.9%, down from the 3.7% it had predicted as recently as April. Georgieva stressed that there are \u201cvery significant\u201d downside risks for the US economy both this year and next.<\/p>\n

A rare good Friday for US stocks helped snap their three-week losing streak<\/strong>, the Washington Post<\/a> reports. After the worst week for global stocks since March 2020 the week before, US indices rallied on Friday and managed to stage a comeback for the week. The S&P 500 was up 6.5% on the week before, the Dow Jones climbed 5.4%, and the tech-heavy Nasdaq \u2014 which has taken a battering in a tighter monetary environment \u2014 gained 7.5%.<\/p>\n

Don\u2019t get your bull horns on just yet: <\/strong>\u201cEven though the market has started to recover, the concerns that caused the bear market are still with us, such as inflation, an aggressive Federal Reserve, high oil prices and geopolitical tensions,\u201d one chief investment officer said in a note cited by the paper.<\/p>\n

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