Charlotte Releases Third Quarter North Carolina Economic Forecast
A mild recession or a return of inflation are both possibilities in the coming months, depending on how conflicting federal monetary and fiscal policies and other economic factors play out.
“While the Federal Reserve is putting the brakes on inflation by raising interest rates, Congress and the president are continuing to stimulate the economy with fiscal policy deficit spending,” said John Connaughton, professor of financial economics for UNC Charlotte’s Belk College of Business. “After 16 months of increasing interest rates, the conventional wisdom would suggest that the economy should be slowing, or we should be seeing signs of recession. But so far this has not occurred.”