NewsUNC Charlotte

Charlotte Economics Professor: Possible Slowdown In Second Half Of 2023

To better understand the direction North Carolina’s economy will take for the remainder of the year, watch closely what steps the Federal Reserve takes next month, said John Connaughton, professor of financial economics for UNC Charlotte’s Belk College of Business. 

Connaughton, who released the North Carolina Economic Forecast Second Quarter Report during a virtual presentation Thursday, May 25, said it’s still unclear if the Fed will raise or pause interest rates when it meets again June 13-14. 

“Either way, the recent trouble in the financial sector is slowing lending across all banks and helping the Fed in its inflation fight,” he said. “However, the net impact of increasing interest rates and reduced bank lending is creating uncertainty about the direction the U.S. economy is heading over the next couple of quarters.  It is quite possible we will see a mild slowdown during the second half of 2023.” 

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