Bloomberg Intelligence’s senior commodity strategist, Mike McGlone, has raised concerns about the state of the US economy. He warned that the country is heading towards a severe deflationary recession due to the Federal Reserve’s tightening. According to him, when commodities have collapsed in the past, the Fed has already been easing, but they are still vigilant against that.
McGlone emphasized that the Federal Reserve is still talking about raising interest rates higher despite recent economic data. He cited the trend of misses on PPI and retail sales and said that it’s part of what happens in a recession. He believes that the US economy is currently in a recession.
The senior commodity strategist also pointed out that the US is experiencing a serious credit crisis with the pulling back of deposits from major banks. He said that it’s just starting to get started, and the annualized industrial demand for natural gas is the lowest in six years.
McGlone’s warning comes amid growing concerns about the US economy. The country has been experiencing a slowdown in economic growth, and there are fears that the trade war with China could worsen the situation. The Federal Reserve has been trying to balance the economy by tightening monetary policy, but some experts believe that it could lead to a recession.
The Federal Reserve has been tightening monetary policy by raising interest rates and reducing its balance sheet. It has been doing this to prevent inflation from rising too quickly, but some experts believe that it could lead to a recession. The central bank has been criticized for its handling of the economy, and there are calls for it to be more proactive in preventing a recession.
The US economy is currently experiencing a slowdown in growth, and there are fears that it could lead to a recession. The trade war with China has added to the uncertainty, and the Federal Reserve’s tightening monetary policy has raised concerns about the economy’s ability to handle a recession. Experts are calling for the central bank to be more proactive in preventing a recession, but it remains to be seen what action it will take.
In conclusion, the US economy is currently facing significant challenges, and there are fears that it could lead to a recession. The Federal Reserve’s tightening monetary policy has raised concerns about the economy’s ability to handle a recession, and experts are calling for the central bank to be more proactive in preventing a recession. It remains to be seen what action the central bank will take, but it’s clear that the US economy is facing a challenging period.
