“The Fed recognized weakness and provided liquidity to the economy,” according to Schulze. That, he added, rejuvenated those economic expansions.
If there is a recession, he added, it “will likely be a shallow one.”
“The good news,” Schulze said, “is that clearly the Fed has gotten the message and is cutting rates.” He added that these actions could lead to “a slowdown in the economy instead of an outright recession.”
Schulze added that consumer spending will also be a crucial factor in whether or not there is a recession next year.
Catechis said that one factor pushing the nation into recession is the trade dispute between China and the United States. “This is a trade war that progressed beyond any evidence of progress,” he said.
The trade war “is being driven viscerally instead of strategically," Catechis said.