Henrik Zeberg, a macroeconomist, has reiterated his forecast of an impending recession, citing continued strong performance in key market sectors.
In an interview with Soar Financially on July 7, Zeberg pointed to the S&P 500 index, suggesting it may reach new highs before facing its worst crash since 1929.
Back in January, Zeberg had forecasted the index would climb to 6,100, and recent months have seen significant gains, with the index surpassing 5,500. He highlighted early signs of economic decline in July, noting the business cycle’s gradual downturn and ongoing recession indicators.
Despite recent market spikes, Zeberg believes the peak is yet to come, anticipating a substantial market correction ahead. He remains steadfast in his prediction of a recession by year-end, potentially peaking in September or October.
While acknowledging the economy’s resilience, Zeberg warns of an inevitable downturn and advises caution amid uncertainties over Federal Reserve policies.
Market analysts await the Fed’s next moves, speculating on how interest rate decisions could influence the economy’s trajectory and potentially signal an impending recession, according to recent analyses.
Fresh data on Personal Consumption Expenditures (PCE) — the Federal Reserve’s preferred inflation gauge — shows inflation ticked higher in May, potentially delaying the long-awaited Fed rate cut into September or later.
Federal Reserve Chair Jerome Powell is once again under fire, this time facing renewed criticism from Donald Trump over the Fed’s decision to hold interest rates steady in June.
Billionaire investor Ray Dalio has sounded the alarm over America’s soaring national debt, warning of a looming economic crisis if no action is taken.
Despite a recent shift in sentiment suggesting the U.S. economy might dodge a recession, key forecasting tools are telling a different story.