Economic Outlook: U.S. Recession Concerns May Be Overstated

According to BlockBeats, Steven Englander, the Global Head of G10 FX Research and North American Macro Strategy at Standard Chartered Bank, expressed on March 11 that concerns about a U.S. economic recession might be exaggerated despite the slowdown in economic growth. He anticipates that declining energy prices and improved weather conditions in the coming months could boost consumer spending, thereby supporting economic growth. Englander forecasts that the Federal Reserve will cut interest rates twice this year. In contrast, the Bank of Japan is expected to raise rates twice due to stable inflation and wage growth, which could lead to the yen outperforming other major currencies. The recent wave of U.S. tariff increases might elevate inflation, but the impact is expected to be manageable. Although tariffs could result in higher prices, their overall effect should remain within a controllable range. Englander also predicts that the U.S. government will employ fiscal policies to support economic growth, potentially strengthening the dollar in the latter half of the year.