U.S. Recession in 2023 Projected by The Federal Reserve Economists

The economists from the Federal Reserve System projected that a U.S. recession will happen later this year. Nonetheless, they added that the recession will only be mild and a recovery will follow in 2024.

On April 15, the economists from the Federal Reserve System projected a U.S. recession this year that will reportedly start sometime in the months of Fall (September to November) or Winter (December to February). Nonetheless, the economists added that the recession will only be mild and will be followed by a recovery in 2024.

According to Guida, forecasts about the U.S. recession are not new. Since early 2022, many experts have been projecting about a recession this year. However, the Federal Reserve System projecting a recession means more probability that it will occur because they have access to the best economic data in the world.

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U.S. Recession’s Effect Worldwide

According to Button, if the U.S. recession does happen, the effects will possibly proceed to Canada. This is because the economies of the U.S. and Canada are interlinked, as the U.S. is Canada’s biggest trading partner. This means a decline in the economic activity of the U.S. will likely be seen in Canada as well.

Therefore, in the event that the U.S. recession does happen, it is suggested that non-cyclical assets like utility stocks must be held. These assets are considered resistant to recession because they offer essential services to people. These assets will be the last things people would cut out of their expenses and consume even during an economic downturn. These non-cyclical assets include food, staple goods, utilities, gasoline, and pharmaceuticals or healthcare services.

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