Economic concerns and increased funding costs may combine to help slow a resilient US economy

The consumer economy has remained strong in the face of rate hikes and labor demand has remained resilient. But recent stresses in the banking sector give Michael Gapen more confidence in his view that the US will see a mild recession later this year. Banks had started to tighten lending by the end of the 4Q and a combination of economic concerns as well as higher cost funding and more regulations could lead to even more tightening. Inflows into money markets are notable and probably don't reverse until the Fed is cutting rates again according to Mark Cabana.

 

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