S&P: US economic growth will fall below trend

The credit rating agency’s statement said that higher interest rates that will last longer, the possibility of a recession and prolonged inflation indicate that credit conditions in North America may deteriorate.

The statement noted that U.S. economic growth will likely fall below trend next year as consumers, who account for 70 percent of U.S. gross domestic product, cut back on spending.

HE PREPARED THE GROUND FOR THE WITHDRAWAL

The statement noted that excess household savings have largely been depleted, student loan payments will begin again next month and there has been an increase in late payments on high-interest auto loans and card payments. credit, especially among low-income Americans. and that this has paved the way for a steeper reduction in spending, which is faster than expected. It was claimed that it could lead to a deep slowdown or recession and put pressure on incomes and profits in many consumer-dependent sectors.

In the statement, it was noted that the Federal Reserve remains cautious on inflation and that the bank is not expected to reduce the policy rate until mid-2024 at the earliest, as core inflation remains above the “level of comfort” of the Federal Reserve. (AA)