For a good while now, experts, including many of those appearing on this channel, have been warning about the "lag effect" of the aggressive interest rate hikes and quantitative tightening program conducted by the Federal Reserve and other major world central banks over the past year.
These experts have cautioned the speed & severity of these cooling measures would cause a sharp economic slowdown that could easily result in recession, deflation & a material correction in the financial markets.
But here mid-year in 2023, the economy is chugging along at 2%+ GDP growth, inflation remains at 3% and the S&P is up 18% YTD and the NASDAQ up a whopping 35%.
So where is the slowdown? Were those predicting one wrong?
They weren't wrong, says Dr. Lacy Hunt. Perhaps just a little early. But a credit crunch is now at hand that will indeed start freezing up the gears of the US economy.
To learn why, we have the great fortune to sit down with Dr. Hunt himself. Dr. Lacy Hunt is a former Senior Economist to the Federal Reserve Bank of Dallas, as well as several of the world's largest global banks. He now serves as Executive Vice President and Chief Economist of Hoisington Investment Management Company.
#recession2023 #creditcrunch #marketcrash
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